WASHINGTON, June 14, 2023 — As the economy faces uncertainty and the possibility of an impending recession looms, it was recently reported that 71% of Americans are stashing more cash and adjusting their spending habits. Financial security can take on any number of forms, but here are three steps that every American should take during times of economic uncertainty:
- Evaluate Your Financial Position and Goals – Life is dynamic, and a recession can quickly expose whether your financial position is one that is strong or needs adjustments. Be sure to assess whether you are close to your targets or falling behind. And take time to evaluate opportunities for growth as well as where you may be exposed to serious risk.
- Develop a Holistic Financial Security Plan – Economic uncertainty often includes events such as job loss, reduced income, and/or increased expenses. Families who have life insurance and guaranteed streams of lifetime income through things like annuities are in a significantly better position to absorb the economic challenges that accompany stock market fluctuations. One of the reasons why is because relying on credit or accumulating debt doesn’t have to occur if you have tools like permanent life insurance policies. More than a year ago, Ernst and Young published a study that exhaustively analyzed how life insurance, especially permanent policies, and deferred income annuities out-perform investment-only or investment-plus-other-products approaches, in every combination.
- Talk to a Professional – Navigating the complexities of the economy during a recession can be overwhelming. It is highly recommended that you seek professional guidance from a holistic financial security professional. They can assess your specific circumstances, help you understand the available options, and tailor a holistic strategy that aligns with your unique needs.
Knowing that you have a financial safety net in place provides a sense of security, allowing you to focus on navigating the recession with confidence and making thoughtful decisions about your future.
At Finseca, we know that financial security improves people’s lives and protects their livelihoods and future well-being. We are rising to the challenge of increasing financial security for all. Finseca represents the men and women of the financial security profession who dedicate themselves to delivering financial security to their clients every day.