A recession can be a scary time of financial uncertainty and insecurity. However, it is completely possible to build and protect your wealth through a recession. By making smart wealth management habits and sticking to effective strategies, you can maximize your assets, even during a recession. 

Wealth management is a holistic approach to managing your finances and reaching your financial goals. Some wealth management strategies may include:

3 wealth management strategies to help you grow your wealth during a recession

A recession refers to a widespread drop in spending, which can last for months or even years. One common indicator of recession is two consecutive quarters of negative GDP, or gross domestic product. However, the official definition is more complicated.

Even if you are not experiencing a recession right now, healthy wealth management strategies can be beneficial. Simply planning your investments ahead of time can help you build your wealth. The following tips can help you increase both your savings and income as inflation and uncertainty skyrocket:

  1. Open a certificate of deposit. 

A certificate of deposit (CD) is a savings account that accrues interest over a fixed period of time. When you cash in or redeem your CD, you receive the money you originally invested plus any interest. If you invest in a CD now, you can benefit from extra cash when you need it, like during a recession. You can open a CD with as little as $500, making it one of the safest and easiest wealth management strategies. 

  1. Invest in stocks.

    A recession can be a good time to start investing, or putting some cash on the sidelines into long-term investments. During a recession, stocks are sold and are worth more later on when the economy picks back up. Investing in stocks during or close to a recession can help you build wealth in the long run. Many programs and applications make it easy for beginners to start investing. They can even invest your money automatically.

  1. Make a habit of long-term investments.

    Your long-term investment strategy can help you build wealth, even during a recession. The dollar-cost averaging strategy involves investing a fixed amount of money in the same fund or stock at regular intervals, such as monthly. With this money, you can purchase more shares when the price is low, and fewer shares when the price is high.

Talk to a ProVise CFP® professional about your wealth management strategies

Are you worried about managing your finances during a recession? At ProVise Management Group, our CERTIFIED FINANCIAL PLANNER™ professionals can get to know you and your current financial circumstances, goals, risk tolerance and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.

Are you ready to talk to a professional about wealth management strategies that work during a recession? Contact ProVise today to schedule a complimentary consultation.