Times of inflation and fear of recession present a variety of possible problems and opportunities for engineers’ investment savings and retirement planning. Whether early in their careers or nearing retirement, abundance of caution is required in an economy where globalization seems to be stuttering and COVID aftershocks are impacting corporate revenues and profits.
In their winter conference SAEA Leaders relayed the recommendations for best practices during inflationary and recessionary times.
Spend and Save Wisely – when the market is down and change is certain, it is not the best to spend frivolously or make large purchases. Spending wisely and saving what you’re able to will ensure a large cushion in unexpected or emergency situations.
Build Out Your Retirement and Investment Portfolio – times of inflation and recession are a great time to invest more. Some like to say that “the market is on sale” during these times as you can invest when the cost to buy in is low and reap the benefits when the market is on an upturn once again. Spend some time ensuring your retirement and investment portfolios are setting you up for success. If you’re older, you’ll need to be more cautious, while if you’re younger, you should invest the maximum during these times. Seek out financial advisory resources for your individual portfolios
When the market swings downward, it can feel scary or uncertain. By taking these top tips, you will be in good shape to be less poorly affected by recession and set up for success in your future.