GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you’re free to read more about oureditorial guidelinesand our products and servicesreview methodology.
20 YearsHelping You Live Richer
Reviewedby Experts
Trusted byMillions of Readers
No one likes the word recession.
For boomers, navigating a downturn comes with its own set of challenges.
When the headlines scream Recession Incoming!
and your retirement account starts shrinking, its natural to want to do something.
But heres the thing: Panic selling is usuallythe worst move you’ve got the option to make.
Those knee-jerk reactions locked in permanent losses.
Heres a reality check during a recession: Claiming early out of fear can limit your flexibility later on.
The math doesnt lie.
Raiding Retirement Accounts Early
Something that Lokenauth said makes him cringe israiding retirement accounts early.
That can be a nasty surprise come tax season not exactly the relief you were hoping for.
I had a client pull $50,000 from his IRA during the last recession for safety.
Made me sick to watch it happen.
But heres the truth: Inflation doesnt stop just because the recession is in full swing.
In fact, it can make things even worse.
According to Lokenauth, this means your purchasing power the value of your money is steadily shrinking.
If youre not actively planning for it, this can become a huge burden, especially over time.
He said he keeps about 6 months of expenses in cash.
Anything more is just bleeding value.
When times are tight, its natural to look for areas to cut costs.
But some cuts can have long-term consequences especially when it comes to maintenance and healthcare.
My uncle tried skipping his blood pressure meds to cut costs, he said.
Ended up in the ER.
Cost him $25,000.
Overall, he highlighted that protecting wealth in or approaching retirement isnt about fancy strategies.
Its about avoiding big mistakes and staying disciplined when everyone else is losing their heads.
More From GOBankingRates
Share This Article:
