If you’re a retiree and depend on your savings to get your through your retirement years or if you have a 401K and are preparing for your upcoming retirement, you may be interested in what several financial advisors have to say about our current year in the stock market.
Many advisors are predicting that 2019 will be the year of the next recession. How do they know this? In past years, when the unemployment rate equaled the rate of inflation, a recession was imminent. Right now, according to Jeff Kleintop from Charles Schwab, the unemployment rate and inflation rate are only 1% apart. That’s not good!
Whether you are invested in the stock market or not, how the Dow Jones gyrates still affects you. Right now, Kleintop states Wall Street is headed towards a bear market. He’s not optimistic at all.
OK, so what if Kleintop is accurate? What’s a retiree currently living on savings or a nearly retiree to do?
1. Start trimming volatile holdings out of your portfolio.
2. Trim your stock holdings and switch into more bonds, such as treasuries.
3. Trim emerging markets out of all your holdings.
For more insight and information on this topic, here’s the interview with Jeff Kleintop along with his advice: