The past couple of years have shown us many challenges, and now a new one seems to be on the horizon; a recession. A lot of people are now at crossroads asking themselves, “Do I plan for a potential recession or wait to see what happens.”
So, is there a reason to panic? At Somekh & Associates, we’re not sounding alarm bells yet, but we are urging you to have your estate documents drafted and ready for whatever this life throws at you.
Here’s What You Can Do to Protect Your Assets
It’s always recommended to get your financial ducks in a row with respect to estate planning, no matter what’s going on in the economy. It’s important to have an estate plan in place because, as we’ve grown accustomed to in the last two years when emergencies hit, there isn’t a warning that allows you to get a head start.
Regardless of the economy, it’s important to have basic documents in place, so things like your will and trust, living trust, power of attorney, and healthcare proxy should always be accounted for. If you don’t have those things in place, hiring an estate planning attorney to help draft these documents is extremely important.
Checking in on your investments, calling your financial advisor, and finding out if there are any potential new investments you should be making is a great way to prepare for a recession. Check your portfolio to ensure that your assets are properly allocated for the stage of life you’re in now and might want to plan for in the next few years.
Asking yourself if all of your beneficiaries are present on your accounts is also a great way to protect your assets. If you have an IRA or 401K and haven’t named a beneficiary, it might be time to do so. If you don’t, and something untimely happens to you, your loved ones will have to participate in probate proceedings. This is always better to avoid.
Next, make a budget, and stick to it. There are many programs out there that can help you analyze and keep track of your spending. They’ll keep track of what you’re spending in real time, which can be a very eye-opening experience. If you notice you’re spending too much in a particular area, reallocating some of those funds to a savings account can be incredibly helpful down the road.
Contact Us Today
If you’re wondering whether or not you need to start preparing your assets for a potential recession, Somekh & Associates can help. It’s always better to have your estate and financial documents professionally drafted and organized, especially as we enter an uncertain economic climate. Visit our website or contact us at (718) 740-3300 to schedule a free consultation with our estate planning attorneys.