Holly Geerdes: Retiring? Here’s Your Checklist for Recession

When it comes to retirement, the primary goal is giving up one’s typical nine-to-five job and having a good cushion of savings to live the rest of your life off of. However, with recent worries circulating about the ongoing inflation and recession, statistics currently report that over half (55 percent) of workers plan to work in retirement.

This being said, planning is key for preparing for retirement, especially during times of economic uncertainty. A financial planner and estate planning attorney can be two tools in your tool belt and others to set you up for success and enjoy the fruits of your labor.

First Step Equals Finance

While the first step for anyone in a recession is to check in with one’s finances, it’s essential to do so when planning for retirement. Depending on one’s assets they possess, being aware of what’s to come and how to protect yourself is key to navigating not only recession but also retirement. Many experts in the retirement space suggest various methods such as saving ten times your pre-retirement salary and planning on living on 80% of your pre-retirement annual income. That said, establishing a comfortable cushion for assessing overall debt is key to formulating a plan.

Some areas of debt to look for consist of student loans, credit card debt, car loans, and your mortgage for your home. When it comes to student loans, creating a good game plan is needed depending on the type of provider of the student loan, whether it is federal or private. For those that received federal loans, there are different methods to alter how you pay by doing a repayment plan or placing loans on deferment.

Keep Investing

Once your debt is established, investment is another brilliant option to turn to as learning how to make a little extra income before you decide to retire and even during. Uncertain market conditions can make it risky to invest, however, adjusting your current portfolio to assess risks and the current landscape of investments. Some prefer to move forward in the funding route, while others prefer the process of stocks and bonds. For example, dividend stocks can supply a reliable method of income for a few years along with opportunities for growth. However, according to professionals, it’s important to have a diverse portfolio with a mixture of funds, stocks, and bonds. 

Preparing Your Estate Plan

An important factor for figuring out your estate plan also has to do with the current economy and what things are like in terms of financial needs. Planning for retirement during a recession is also a significant factor in determining your next steps.

For estate plans, having a trust or will is important all around to ensure that your legacy is carried out and that your loved ones receive some of the assets meant for them. The difference between a trust and a will can be the simple fact that trusts can occur even when that person is still living. They are commonly used in estate planning to help with dispensing assets to various heirs as designated by the trustee. As far as a will goes, it is solely created for after-death purposes. If one does not have a will things can get tricky and loved ones can end up dealing with probate. The overall process of shifting assets can be less timely and done a lot more efficiently compared to that of a will.

End Note

With recent statistics stating that only 33 percent of Americans have an estate plan, there’s no better time to plan and get prepared before a recession. Accounting for finances, evaluating your investment portfolio and current debt, and establishing an estate plan can put you on the right track for retirement even with uncertain economic conditions.

Holly Geerdes Bio:

From navigating the estate planning landscape to handling wills and trusts, Holly Geerdes has over 22 years of experience in the legal field as a premier trial and asset protection attorney in the United States. She has overseen the major legal issues pending across the U.S as well as locally for local State legislatures and State Bars. With her array of knowledge, she is now considered one of the most sought-after attorneys who trains lawyers interested in the categories of estate planning, elder law, and asset protection. Holly is also the founder of Estate Law Center where she hosts in-person and online workshops to educate the general public on the process of wills and estate planning.