Jill On Money: The upside of a downturn

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Jill On Money: The upside of a downturn
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With prices high and recession fears swirling, Americans are nervous. Instead of feeling helpless, now is a good time to highlight six potential upsides of a downturn in both the economy and financ…

So, while the economy is still growing, make sure that your emergency reserve fund can cover 6-12 months of living expenses. If you’re already retired, increase it to 1-2 years’ worth of expenses, to avoid being forced to sell assets at lower levels just to pay the bills.

Instead of being lured into thinking that you will make more by investing than paying down debt, you will find that the guaranteed return that debt pay down delivers is not just good for your balance sheet, it will likely end up being your best investment of the year. Ideally, whatever you convert keeps you in a reasonable tax bracket and for this to work, you need to have non-retirement funds available to pay the tax due.

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