SPONSORED

How the 2020 recession in the US is affecting Americans in 2021 and into the future – don’t worry though, there’s good news.

Jun 4, 2021, 3:58 PM
recession in the US...
Photo: Adobe Stock

Teton Wealth GroupThis article about the last recession in the US is presented by Teton Wealth Group.


Most economic experts are agreeing that the US entered a recession in late February and early March of 2020. Luckily, it didn’t last long at all. Only officially from February until April. But now a lot of economists are starting to wonder if there will be another recession on the horizon?  And it absolutely depends on who you talk to. Either way, it’s worth taking a deeper look at some recession facts that everyone should know.

Why are they called ‘recessions’?

2020 recession - recession in the US

Photo: Adobe Stock

They are called ‘recessions’ because calling them “depressions” is far too scary. After the Great Depression, which is actually a term that was once considered milder than “panic” or “crisis,” the term “depression” for an economic downturn seemed much more terrifying. So because of this, economists began to use the term “recession” instead.

What constitutes an official recession in the US?

Economic uncertainty - recession in the US

Photo: Adobe Stock

The National Bureau of Economic Research is the arbiter of the definition. They say that it’s defined by two quarters of consecutive poor gross domestic product or GDP. There are other factors considered too including declines in real manufacturing and wholesale-retail trade and industrial production. But essentially it’s about 6 months of the economy losing its traction and falling.

How long do they last?

Econimic Crisis - recession in the US

Photo: Adobe Stock

On average most recessions last 17.5 months. And that average goes back to 1875. The longest post-WWII recession began in December of 2007 and ended in June of 2009. It’s unfortunately a recession you might be all too familiar with.

What’s the worst effect of a recession?

Covid Recession - recession in the US

Photo: Adobe Stock

An old economist joke is that a recession is when someone else loses their job, and a depression is when you lose your job. The reality is that job loss is possible. And there could be long term economic scarring for just a few 

Can you retire during a recession?

Rertirement - recession in the US

Photo: Adobe Stock

Yes, you can retire during a recession. But it might be good to consider a part-time job rather than stopping work entirely. You won’t have to withdraw as much from your retirement accounts, giving them a chance to recover from any losses. 

Working part-time can help you delay claiming Social Security so you can get bigger benefits later.

Consider an annuity. An annuity can help to create a steady stream of income, and some of your IRA funds can be transferred to purchase an annuity.

The bottom line

Prosperity - retirement in recession - recession in the US

Photo: Adobe Stock

Although retiring during a recession or bear market is never fun, there are several things retirees can do to shield their portfolios from long-term fallout. Realizing capital losses, dollar-cost averaging, and portfolio rebalancing are just some of the strategies you can use to keep yourself afloat in choppy market waters.

Working with qualified advisors like the advisors at Teton Wealth Group can really help you get to where you want to be in your retirement. Even if it’s in a recession.

Every family working toward retirement needs an Ascent Plan. Click here for a complimentary Ascent Plan from Teton Wealth Group today. The Ascent Plan includes the five main areas of retirement planning:  
    • Income 
    • Investments 
    • Taxes
    • Health Care
    • Legacy
This no-cost no-obligation plan will show you how to create a safe and robust retirement.

Related articles:

Today’s Top Stories

Sponsored

Photo: Warmzone...
Warmzone

Heated driveways are a modern wonder, but what else can you do with radiant heating around your house?

Environmentally friendly radiant heat offers many advantages over traditional heating systems.
5 days ago
Fall Themed Foods...
Bonneville Digital SLC

Fall themed foods | 4 easy, festive gift ideas for an extra-special autumn

This article about the best fall themed foods is sponsored by Macey’s. Happy shopping! Do you always find yourself pressed for time during the holidays, but you still want to impress your family and friends with autumn-themed foods? Don’t worry– here are a few fab ideas for beautiful, tasty autumn gifts.  4 fast, easy […]
24 days ago
prepare for retirement checklist...
Teton Wealth Group

Your prepare for retirement checklist | 6 things you can do now to prepare for your retirement

Your prepare for retirement checklist should include what you can do right now to prepare for the changes that retirement will bring.
1 month ago
How to pick a financial advisor...
TETON WEALTH GROUP

How to pick a financial advisor | What questions do you need to ask to make sure you are getting the best advice?

Do you know how to pick a financial advisor? Here are 10 questions you should ask your potential financial advisor before you hire them.
2 months ago
Form Derm Spa...
Form Derm Spa

Free Virtual Consultation + Form Derm Spa’s 5-Year Anniversary Offers

Your free virtual consultation is waiting at Form Derm Spa. It's their 5-year anniversary, and they want to take a moment to celebrate you!
2 months ago
Photo has been provided by Pestie....
Pestie

Pest control delivered | Why Pestie is the subscription pest control treatment system you need around your home

Subscription boxes for home maintenance you never knew existed- homeowners face a whole laundry list of maintenance needs. But keeping track
3 months ago
How the 2020 recession in the US is affecting Americans in 2021 and into the future – don’t worry though, there’s good news.