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Is a Recession on the Horizon? How I Watch Over Your Money 

31 May
Is a Downturn On the Horizon_ How We Watch Over Your Money

By: Colleen Weber

Investment / News and Updates

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By Colleen Weber, CFP®, CPA

Is the state of the world making you feel unsettled? It seems like things are constantly changing and we’re just waiting for the other shoe to drop. If you’re like most people, living with this level of uncertainty day in and day out can be stressful. But as much as we may not like living with instability, the market likes it even less. 

For instance, stocks have been plummeting lately, which is not helped by investors purging stocks due to recession fears. As of mid-May, the S&P 500 was down nearly 20% from January’s high, briefly dipping into bear market territory. (1) Even the big guns were not immune to a drop, with Amazon and Apple posting declines, among others. (2,3) As a result, many economic leaders are predicting a recession in our near future. (4) We can point our fingers at many factors as the cause of our recent nail biting, such as rampant inflation, the Fed’s solution of increasing interest rates, and international unrest, but the fact remains that we have no control over any of that. 

I’m here to help you take a deep breath and walk you through whatever our markets decide to do. Here’s how I’m watching over your finances and taking proactive steps so you don’t have to alter your lifestyle or the way you save. 

Big-Picture Planning

I don’t make investment decisions based on what everyone else is doing or what’s popular in the investment industry. Whenever I make planning decisions with you and offer investment recommendations, I do it with your goals at the forefront. When the markets get shaky, I take the extra step to review your objectives and make sure long-term planning is in play so you keep planning for an early retirement while still living your present life to the fullest. 

I Know Your Risk Tolerance

Do you know that feeling in the pit of your stomach when you make a decision that was too risky for your comfort? My goal is to help you avoid that feeling when it comes to your investments. Before investing any of your money, I determine your risk tolerance, the amount of risk you’re comfortable taking or the degree of uncertainty you can handle. Like most things in life, your risk tolerance may change with age, income, and financial goals. I don’t want you to lose sleep at night, so I’ll review your risk tolerance and how much risk you can afford to take and adjust your investments over time. 

Don’t Quit on Your Plan

Remember, your plan has been built on a solid foundation. When I analyze potential scenarios and plan your investment strategy, I do it with the knowledge that bear markets have happened in the past and will happen again in the future. I plan for downturns and the unexpected up front so that when the markets throw a curveball, you don’t need to panic or stress. I know how to help you build and safeguard your wealth—in good times, a downturn, and everything in between.

One of the most important rules in investing is to refrain from making emotional decisions. It’s easy to get swept away emotionally when the market negatively wreaks havoc on your finances. But if you stay true to your investment strategy and avoid making decisions when emotions are running high, you won’t run the risk of losing even more. If you don’t have someone you can turn to when the market gets wild, I’d love to support you and help you build your finances for a strong future. Reach out to me today by calling (952) 470-0750 or book a free introductory meeting online!

About Colleen

Colleen Weber is a fee-only financial advisor, CERTIFIED FINANCIAL PLANNER™ professional, and CPA with more than 15 years of financial planning experience. Providing comprehensive financial planning and wealth management, she specializes in serving clients nearing retirement, retirees, busy professionals, and women. She is passionate about developing financial plans that save clients on taxes and investment strategies that help them pursue their goals. Learn more about Colleen by connecting with her on LinkedIn or booking a complimentary phone call meeting.

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(1) https://www.forbes.com/sites/sergeiklebnikov/2022/05/12/dow-falls-600-points-sp-500-hits-new-2022-low-as-staggering-market-losses-continue/?sh=6cce11121bef

(2) https://www.cnbc.com/2022/05/23/stock-market-futures-open-to-close-news.html

(3) https://www.cnbc.com/2022/05/24/5-things-to-know-before-the-stock-market-opens-tuesday-may-24.html

(4) https://fortune.com/2022/05/20/recession-economy-stock-market-expert-predictions-jamie-dimon-carl-icahn-elon-musk/