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Best approach to prepare for impending recession and economic doom of the USA (lemmy.dbzer0.com)

submitted 2 days ago by [email protected] to c/[email protected]

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I don’t have much in terms of investments (401K). I was wondering if there is anything I can do to minimize the impact of the incoming recession on my financial position.

1- What do I do with my 401K? Do I keep it in the same funds or should I look into reinvesting it in different funds? 2- Should I keep an eye out for “the dip” and buy in? What? Market funds? Bond funds? ETF? 3- In terms of stocking up, what’s the best approach? Bottled water obviously, but what else? 4- I am almost done paying off my credit cards. However, I bought a new car last year. Other than looking into refinancing to a lower APR, is there anything else I can do?

Until last year, I never thought much about how to survive the many “once in a lifetime“ shitshows we are seeing and usually rolled with the punches because I mainly didn’t have the financial means to do so.

Now that I am somewhat financially capable –a privilege not many of my fellow countrymen have unfortunately– I want to try and minimize the damage that is incoming.

Any advice/suggestions would be greatly appreciated. Thank you in advance.

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[–] [email protected] 6 points 2 days ago

There's not really anything you can do for your 401k. Taking out any money before retirement is going to hit you with a lot of taxes. If anything, you could consider increasing your contributions during the dip to maximize gains whenever the economy recover. That is, if you can afford to do that while the cost of living is skyrocketing.