(StatePoint) Economic analysts increasingly predict that the U.S. will soon experience a recession, and a recent survey by CFP Board/Morning Consult shows many Americans agree: 55 percent of respondents believe a recession will occur in the next year. Roughly three quarters of respondents said an economic downturn would affect their household, with more than a third projecting it would have a major impact.
Experts agree that developing and sticking with a prudent, long-term financial plan is key to protecting yourself against market swings, and the survey findings underscored the value of partnering with a financial advisor before and during a recession. Sixty-seven percent of respondents who are working with a financial advisor said they would feel prepared if a recession began in the next 12 months, compared to 38 percent of those not working with an advisor. In addition, 77 percent of people working with an advisor said they are confident their advisor would successfully manage their finances through a down market.
A Certified Financial Planner (CFP) professional can help you bring all of the pieces of your financial life together and provide confidence that your finances can withstand the pressures of an economic downturn. Of the survey respondents who work with a CFP professional, 73 percent reported feeling more prepared for a potential recession now than they did in 2008, during the Great Recession.
Trained to give you a “big picture” view of financial solutions and develop a plan that is tailored to your specific goals and interests, a CFP professional will help you set long- and short-term goals and will periodically review and adjust your financial plan as needed to ensure you stay on track to reach those goals. A CFP professional will also help you understand the implications of your financial choices, providing competent and ethical advice that supports sound financial decision-making and avoids impulsive actions. To find a CFP professional near you, visit www.letsmakeaplan.org.
Partnering with a financial advisor may be one of the most important steps you can take to protect yourself and your family from feeling the effects of a dramatic market decline.
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