You’ve probably heard the news by now. The Great Recession ended in 2009 according to a prominent group of economist. This points out the disconnect between economics and real life.

Did the Great Recession really end in 2009? Actually, it did from a technical point of view according to the National Bureau of Economic Research. An economy that had been contracting turned around and started growing again. This is one of many ways to define the end of a recession be it large or small.

This “recovery” is obviously different than most we’ve experienced in the past. The problem is the recovery is anemic to the point of it seeming as though we are not turning around at all. Instead, the growth rates of just over 1 percent reflect an economic environment this is rife with problems and fear. This is in contrast with typical recoveries that show growth rates in the 4 to 5 percent range. 

So, what does this mean to you? Should you continue to bunker down in case the economy falls back into recession? Will the stock market collapse? Are we just about to see everything start growing like mad again? Nobody has a crystal ball and can predict the future, but that doesn’t mean there aren’t some common sense steps you should consider. 

The first is refinancing your mortgage. The rates for a 30 year fixed loan are in the 4.5 percent range. That is a staggeringly good deal. If I offered you that rate 5 years ago, you would have jumped on it in a second. Why aren’t you doing so now? 

What about your retirement nest egg? Why haven’t you switched it over to a Roth IRA? The 2010 tax loophole makes this a no brainer for most people. Switching your money into a tax free growth environment will save you hundreds of thousands of dollars in taxes down the road. That is a good move in any economy.

Have you checked the premiums on your life insurance in the last 18 months? If not, you are almost assuredly paying too much. We are in a period of stagnation with high competition. This translates to low costs. Slashing your premium payments can be one way to save a bit of money these days, perhaps even more than a bit. 

What about tax planning? The end of 2010 is not that far away. Now is the time to sit down with your tax professional and map out the moves you need to make before the end of the year to minimize your tax hit. If you complain about the amount of tax you pay each year, this is the most important step you can take to minimize that pain. 

The Great Recession may have ended in 2009 from a technical perspective, but it is safe to say that most people haven’t felt that turnaround. Will it come? Of course. The only question is how quickly and how strongly. Until then, taking the prudent steps mentioned above just makes sense.  

Contact me today at (800) 341-5433 or via this contact form for a no cost consultation on how to get your financial house in order in these trying times.