Do you give yourself free rein when it comes to holiday spending? Have you forgotten the founding fathers' stern visages because you charge everything to your credit card? With the U.S. economy showing signs of slowing and consumer spending skipping behind , it's a good time to reevaluate spending habits and brace for some budgeting.
If you are confused about how to prepare for a likely recession, Paul McClatchy, vice president of financial planning at wealth-planning technology firm eMoney Advisor, has these five tips to offer:
- Regardless of what the market does, everyone needs an
- Invest in blue-chip and defensive stock funds. If we do hit a recession, the latter may be the best to invest in. Large fund companies offer plenty of choices: Look for large-cap or income-producing funds, which are the most likely to contain stocks that will weather a downturn relatively well. Some firms with defensive stock funds require a minimum investment that can range anywhere from $50 to $3,000. Shop around for those that suit your needs.
- Try to get any
- If you are approaching or are in retirement, consider seeking a financial adviser to recheck your
- Remember that the best time to jump into the market is when it plunges. People always look for sales, but for some reason when it comes to stocks they only buy when it surges. If there's any advantage to having a recession, it is that big companies go down in price. That's the time to buy, especially blue-chip stocks.