Financial Planning Note of the Week
Financial Planning Note of the Week: With the possibility of a recession increasing, clients with financial plans that call for major home improvements, major discretionary purchases (vacation home, new car, etc.), or other purchases that are not immediately necessary, should be warned of the potential for recession. Any major purchases that can be postponed should be pushed off into the future. This is the time when most consumers doubt the likelihood of a recession and keep spending as if everything will remain normal. Consider counseling clients to halt major purchases. What's the worst that will happen? The recession doesn't happen and they have plenty of cash to proceed with their planned purchase? Better to be in that scenario than the alternative - made the major purchase at peak prices only to see a recession hit and earned income get squeezed.