As I write this blog post and submit it to the Adview department, we will have already heard the news on the Gross Domestic Product (GDP) signaling whether or not we are in a recession. Since the Federal Reserve raised rates yesterday by ¾ of a point and the spinning the current administration is doing as to what is really a recession, I going to go out on a limb as say the numbers will show us in or starting a recession. Politicians are pinning there hopes on employment numbers to save them this November and saying we can’t be in a recession, look at the employment numbers.
While we could have lively and spirited economic discussions on what is or isn’t a recession and who will officially make the call, none if it really matters. Yep, it doesn’t matter what you call it when it now takes double the money to fill up your vehicle gas tank or your have found yourself cutting back at the grocery store and the allure of coupons becomes more appealing. And then there is your 401(k) statement, you see your retirement date getting pushed out yet again. Maybe you are already retired, and you have cancelled plans to see the grandkids and this years Christmas presents are going to be $20 gift cards. It’s real, it hurts, and it sucks!
In the meantime, there are some things you can do. The biggest is not adding more debt to your budget. I know, it sounds a little obvious, but it is important not to do that. The next important thing is to continue to invest. This is a perfect time if you are still working to increase your contributions if you can. These economic cycles (look a new way to spin it) don’t last for long. In fact, if you have been to our conference room and have seen the chart of the stock market, you will notice the periods of recession or retraction (I am getting good at spinning this) are shorter and shorter. As they say tough times don’t last, tough people do.
Mike Mickels is the President of CochranMickels Retirement Specialists and an avid sporting clay competitor. CochranMickels Retirement Specialists provides personalized planning and investment services to individuals approaching and in retirement. They also provide retirement and benefits training to Federal employees. Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc, a Registered Investment Advisor. CochranMickels and Cambridge are not affiliated.