Is It Time to Prepare for a Bear?

Marguerita Cheng |

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By considering the current status of your finances and taking the right steps to make sure you have a good handle on them, you’ll be significantly decreasing the likelihood of any surprises when a recession hits. If you need guidance throughout this process, enlist the help of your financial planner to evaluate your current financial plan and investment portfolio, minimize current debt and share best practices for building an emergency fund.

To get started, here’s a checklist to follow:

  • Revisit/Create Your Financial Plan: As flight attendants remind us, “items may have shifted during flight.” The same goes for your financial plan—hopefully for the better, but regardless, right after tax season is a good time to update the game plan.
  • Maintain a Healthy Emergency Reserve Fund: For those still working, maintain 6 to 12 months of expenses (12 to 24 months for retirees) in a safe, liquid account.
  • Pay Down Debt: There’s nothing like a recession and bear market to expose the dangers of carrying too much debt.
  • Maintain a Diversified Portfolio: …and don’t forget to rebalance your portfolio to the desired level of asset allocation


For more information, check out CFP Board’s

For additional guidance, A CERTIFIED FINANCIAL PLANNER™ professional can help you develop/update a financial plan, share best practices for building an emergency fund and paying down debt and assist in creating and managing a diversified investment portfolio.



The mission of Certified Financial Planner Board of Standards, Inc. is to benefit the public by granting the CFP® certification and upholding it as the recognized standard of excellence for competent and ethical personal financial planning. The Board of Directors, in furthering CFP Board’s mission, acts on behalf of the public, CFP® professionals and other stakeholders. CFP Board owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements. CFP Board currently authorizes over 80,000 individuals to use these marks in the U.S


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