Is a recession on the way? The bond market seems to think so, judging by the inverted yield curve, and so does the Trump administration, if the somewhat desperate call from the White House for more tax cuts is any indication.
If a downturn is coming, what can you do to prepare? My guest on the podcast this week addressed that question in a recent post for NextAvenue.org. Chris Farrell is the senior economics contributor to "Marketplace," the public radio business and economic program, and his post examines reasons why odds of a recession are rising, and ways to shore up household finances.
I wanted to push the conversation in a different direction - how would a recession impact retirees, and people close to retirement? Our podcast chat centers on these points:
How to think about your retirement portfolio allocation, and the perils of marketing timing;
The job market and how a downturn can lay waste to your retirement plan;
The spending side of the equation - how can you trim spending if the economy heads south?
Chris has written extensively on these themes. His most recent book is Purpose and a Paycheck: Finding Meaning, Money, and Happiness in the Second Half of Life. He takes a close look at the labor market for older Americans, and of course that is a big part of what we discuss on this podcast. One of his earlier books, The New Frugality, also comes into play in our conversation.
By the way - kudos to The New York Times for trying to explain the invested yield curve to all of us with a 3-D graph, and a comparison to pro football. Points awarded here for effort, although I bet most of us still cannot stand on one leg and explain it. I have trouble enough doing it standing on two legs.
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Is a recession coming? How would that affect retirement plans?