The State of the Economy|Dont panic

The current state of the economy is probably the worse economic slowdown that most of us have experienced. It’s scary. It seems like there is no end to the bad news and the value of assets (stocks and real estate) will never stop falling. Most investment advisors we speak with continue to believe that the lack of a detailed plan from the Treasury on how it is going to deal with the banking system is the biggest obstacle that must be resolved in the short-term. In the longer term, the stimulus package and various Federal Reserve programs should act to stimulate the real economy.

Some of our clients, who were alive during the great depression of the 1930’s, tell us that we are a long way from those conditions. If you’ve lost your job or retirement savings you feel like we are there already.

Here are some items to think about today:

  1. Don’t fixate on the bad news
  2. Create a spending plan and stick to it
  3. Measure your current liquidity and pay down debt
  4. Focus on a broader personal financial plan
  5. Continue your retirement savings
  6. Take advantage of real estate if you can lower your current payments
  7. Only use home equity loans to cover current spending as a last resort, this is a risky strategy
  8. Safeguard your money
  9. Review your investments
  10. Review the in-force life insurance illustrations and premium forecasts

If you would like us to review any of these points with you please call our office.

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