Something that may have flown under most Americans’ radars recently was a financial stress test the Fed performed on select U.S. banks to gauge their strength and ability to weather a crisis. In this simulated economic panic, all 33 banks that were tested passed. That’s encouraging news.
Would your finances pass a stress test? Now is a great time to find out by asking yourself these 3 questions:
1. Do I have enough savings to cover 3-6 months of living expenses if something unexpected happens?
2. If my income dropped suddenly by 20-30 percent, are there any non-essential expenses I could cut back on or eliminate to free up cash flow in a pinch?
3. Does anyone else know my wishes about financial and/or healthcare directives if the worst should happen to me?
If you answered no to any of these, we should talk. Working together, we can help you feel better prepared to face life’s inevitable disruptions. These articles can help you understand some of the issues stressing people out recently as well. Let me know your thoughts or if you have questions.
How To Build An Antifragile Financial Plan With 4 Buckets
July. 1, 2024
Your financial plan can be antifragile, strengthening under stress, with a 4-bucket approach.
Elections Don’t Matter When It Comes to Your Portfolio
June. 28, 2024
As a contentious presidential contest heats up, some investors are clinging to cash. But research…
6% of Your Paycheck Is Becoming the New Standard for 401(k) Saving
July. 1, 2024
Workers are putting a record share of their income toward retirement. Employers’ automatic…
Inside the new job stress test
How to Invest in This Fraught Election Year
July. 1, 2024
With one big caveat, most people are likely to be better off if they forget about politics when…
Did Your Heart Just Skip a Beat? Your Watch Already Knows That and More.
June. 27, 2024
Wearables are collecting tons of actionable information about you. The devices could detect…