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Jul 7, 2022

We hope you all had a great Fourth of July! Whether you are in retirement or you are getting close to retirement, the current market volatility may be worrying you. GDP hasn’t grown for a second-quarter indicating we are probably entering a recession. Is your retirement plan built well enough to withstand the storm?

If you did shopping for any kind for a BBQ this weekend you probably noticed how less your money stretches. On today’s episode, we’ll explore four things that you need to consider when it comes to planning a retirement around a recession.

Looking back at the great recession we saw Americans lose 19.2 trillion dollars of net worth. We also had a small recession when COVID hit. These events really impact how people think about their savings now.

Firstly, we need to consider healthcare. Some of you may be worried about whether your plan can keep up with rising healthcare costs. The studies show though, that if you’re 65 and you retired last year you can anticipate spending about $300,000 in healthcare and long-term care. This doesn’t happen all at once though; it’s spread out throughout retirement.

Next, we want to evaluate the assets you’ve accumulated and how it matches up with projections for the future. How much did you spend on food and rent last month? How well will your assets cover these expenses in the future?

If you’re still working, staying invested is important. But a lot of people wonder how much of their savings should be invested in the market during a recession? Well you need to calculate your risk tolerance. A lot of us don’t feel stressed investing a lot when the market is doing well, but when it starts to go down we may have a different comfort level.

Lastly, we need to consider the income gap. If you calculate your expenses and compare it to your retirement plan and you find you don’t have enough to cover those expenses you may experience this income gap. There are some other options to cover these gaps, such as annuities.

We don’t want to let the market dictate your lifestyle. Make sure you do the math now, to ensure you are protected now and in the future. You don’t need a bull market to guarantee a great retirement.


Check out the full episode or use the timestamps below to hear a specific segment.

2:08 – Firework story

3:34 – We might be entering a recession

4:55 – Looking back on history

7:20 – Factoring in the cost of items and travel

8:24 – The cost of healthcare

11:06 – Assets you’ve accumulated

14:11 – Investing in the market

18:34 – Having an income gap

22:09 – Don’t let the market dictate your lifestyle


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