JP Morgan CEO Warns 'Banking Crisis Isn't Over' — 5 Steps To …

GoBankingRatesSelena FragassiUpdated April 5, 2023, 7:05 PM(C)Shutterstock.com(C)Shutterstock.com

As if the banking crisis recently caused by the collapse of Silicon Valley Bank and Signature Bank last month wasn’t alarming enough, now one financial insider is revealing the downfall isn’t over yet. See: Here’s How Much Americans Have in Their Savings Accounts in 2023
Find: How To Guard Your Wealth From a Potential Banking Crisis With Gold JP Morgan CEO Jamie Dimon shared as much in a letter to the bank’s shareholders earlier this week. “The current crisis is not yet over, and even when it is behind us, there will be repercussions from it for years to come,” Dimon divulged, as reported by Reuters.

Because of recent banking developments, as well as the unstable economy, Dimon also believes the “odds of a recession have increased.” He softened that perspective with the thought that any upcoming economic windfall won’t have the same effects as the 2008 financial crisis — however, he indicated it will greatly affect the banking industry. As he wrote in the letter, the current environment “will clearly cause some tightening of financial conditions as banks and other lenders become more conservative.”

Dimon’s perspectives also take on greater weight considering the dire April 5 jobs report, one that came in far below expectations. Per CNBC, private sector jobs rose only by 145,000 in March, which is far below projected estimates for 210,000 jobs and down significantly from 261,000 new jobs reported in February. As the news outlet suggested, the numbers show “another potential sign that U.S. economic growth is heading for a sharp slowdown or recession.”

Take Our Poll: Are You Concerned About the Safety of Your Money in Your Bank Accounts? Though experts warn there’s no cause for panic at the banks — finance guru Suze Orman hosted a webinar last week echoing the general consensus that your money is safe in banks and withdrawing will only accelerate problems — there still are some things you can do now to prepare for fiscal turmoil ahead.

  1. Build up your emergency savings fund now. Orman reiterated that having a financial safety net is more important than ever given signs of a recession. Ideally, you’d want six months of savings set aside — but whatever you can allocate is better than nothing.

    You might consider depositing your tax refund, getting a side gig and cutting out any unnecessary costs.

  2. Keep your investments where they are. If you are not nearing retirement any time soon, it’s best to keep your retirement savings portfolio and other stock market investments intact for the time being. While the markets may fluctuate and hit a low point in the near future, long-term strategies are still the best when it comes to the market — so plan to ride out the waves. However, if you are retiring in the next decade, Orman suggested removing money from the market and investing in dividend-paying stocks instead.

    There may not be enough time to allow your money to rebound if held in traditional market investments.

  3. Plan to buy more stocks. Yes, buy more. When the market takes a hit, it’s actually the best time to invest in more shares at a cheap cost. The market will likely rebound, if history is any indication.

  4. Rollover to a Roth IRA if you don’t have one yet. CNBC pointed out this is ideal because of how taxes are applied.

    Before you retire, you’ll pay taxes on the contributions but withdrawals during retirement will be tax-free. “Rolling over to a pre-taxed Roth IRA will cost 20% less if your retirement account is down 20%,” CFP Clark Kendall told the news outlet.

  5. Reassess your spending habits and tax burdens. Of course a recession will make anyone want to tighten their purse strings. See where you can make sacrifices. Maybe it’s cutting Netflix, Apple Music and other subscription services, or walking/biking more to save on fuel costs.

    Make an itemized list of all your expenses, your average costs and where you can make cuts.

    The other item you’ll want to look at is any tax advantages you can tap into during a recession — especially if you’re doing No.

    2 and No.

    3 above, which could offer perks when it comes to tax bills. “Using tax-advantaged accounts and tax deductions will help you reduce your overall tax liability and accumulate more wealth,” claimed Harvard Business Review.

More From GOBankingRates

This article originally appeared on GOBankingRates.com: JP Morgan CEO Warns ‘Banking Crisis Isn’t Over’ — 5 Steps To Prepare Now

Originally published April 5, 2023, 6:53 PM

Tags:

brook-taverner listed on couponmatrix.ukfolly-farm-adventure-park-and-zoo listed on couponmatrix.uki-want-one-of-those listed on couponmatrix.uknike-store listed on couponmatrix.ukroyal-horticultural-society-rhs listed on couponmatrix.ukwhistles listed on couponmatrix.uk
brook-taverner listed on couponmatrix.ukHow do you use a Brook Taverner discount code? You’ll be instructed to enter a code once you are on the transaction page. There will be a clearly shown area to enter the code. Remember to enter the promo code before you complete the transaction, as it may not be possible to apply the code afterwards.
folly-farm-adventure-park-and-zoo listed on couponmatrix.ukTreat the whole family to a visit to Folly’s Farm, and enjoy four exciting experiences for the price of one! Don’t forget to browse our Folly Farm vouchers and you could get go wild on a stellar day out for a fraction of the regular price. Not only can you get up close and personal with lions, lemurs and other exotic animals at the zoo, but there are plenty of farmyard frolics to be had with the pigs and donkeys in the barn. Dare to take on the vintage rides at the charming Folly Farm fairground and take your pick of adventure play zones to top off your day!
i-want-one-of-those listed on couponmatrix.ukI Want One of Those is an online retailer offering gifts in the form of homeware, gadgets, gizmos, toys and office accessories as well as organised adventures. With Groupon you can make use of a I Want One of Those discount code to save on your best friend's new drone or cut the cost of your dad's new whisky decanter. With regularly changing offers, gift ideas for people of all ages and a constantly growing selection of stock, get shopping to secure a bargain price on your next present.
nike-store listed on couponmatrix.ukNike, and its legendary swoosh logo, is one of the most iconic brands in the world. Originally a running shoe manufacturer, it now creates clothing, equipment and footwear for pretty much every sport, as well as leading the way in fashion and streetwear. Nike pioneered the use of sportspeople as crucial components of its products, working with legendary figures such as Michael Jordan, Serena Williams and Cristiano Ronaldo. You can regularly save up to as much as 75% on goods through sales and discount codes. Arguably the ultimate manufacturer of sportswear and sporting equipment, you'll struggle to find a sport that Nike doesn’t cater for. Everything from shorts to shin pads, bikinis to basketballs, they’re also experts in streetwear and loungewear, as well as being famous for some of the world’s most recognisable footwear. The legendary Air Max range is joined by iconic silhouettes such as the Air Force One, Cortez and Blazer. The discounts are just as dizzying, with seasonal deals and hefty price drops ensuring there’s always a bargain to be had.
royal-horticultural-society-rhs listed on couponmatrix.ukIf you have anything more than a passing interest in gardens or gardening, then RHS membership is a must. Free entry to their four flagship sites includes a complimentary guest pass on top - and admission to over 200 partner gardens at selected times as well. Your membership alone will save you huge amounts, and our RHS vouchers will prune off even more of the overall cost - leaving you plenty of spare cash to spend on discounted seeds and plants for your own garden, which will go from strength to strength thanks to all the RHS tips and advice that are also included when you join.
whistles listed on couponmatrix.ukDress yourself to the nines in the timeless womenswear from Whistles and add a touch of understated glamour to your everyday look. Snap up a Whistles discount code from us to revamp your wardrobe with beautifully-designed pieces, created to suit the modern woman’s lifestyle. With an emphasis on quality and longevity, the Whistles collection offers apparel that’s built to last. Whether you’re looking for a fierce look for the office or a statement piece for Saturday night, Whistles will cover your back.