As the coronavirus rages on, the recession that the United States economy is currently entrenched in, carries on as well. Fiduciary financial advisor Dustin Stanley of Strategic Wealth Designers joined WDRB in the Morning to talk about four ways you can prepare to come in a better situation after a recession. His first suggestion is to look at ways to make some changes in your investment portfolio that could be advantageous in the long run.
“We always hear ‘buy low and sell high’ right now there are certain sectors, like cruise lines, travel companies, a lot on really on sale,” Stanley says. “Adding some of those lower valued companies right now could be good for the long term, same thing with your 401K or 403B at your employer. If you can up those contributions, you can make this volatility work for you instead of against you.”
Another option to be in a better position after the recession is looking at lowering your debt exposure. Interest rates are at all-time lows and viewers should look to shop their financing options on homes, cars or even land they may be paying off. A re-finance on a mortgage could save hundreds or even over $1,000 dollars every month. Additionally, lower costs where you can. Stanley says the manufacturing industry pioneered this ideology and everyone should look to mirror that in their own personal lives and their finances.
“Manufacturing has this down. They call it lean manufacturing and what they are trying to do is cut out any fat,” Stanley says. “If you are a business or a homeowner you should start looking at what you can start reducing. Do you really need cable? Do you need all the services you subscribe to monthly? Trim some of that fat and save you and your family some money right now.”
Finally, Stanley says consider bargain shopping by using an old-time method of negotiation. Ask if the business will consider a discounted price for a good or service you are interested in obtaining. He says many times local businesses are willing to work with you on price to help move some of their product out the door while still making a profit.
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