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dir="ltr">For some Illinois residents, preparing for the next recession could involve moving more than money.
A wealth management adviser in Illinois said she would recommend some people nearing retirement look for a new place to live.
Economic forecasting is difficult, but people like JPMorgan Chase Chief Executive Jamie Diamond have warned a recession could be around the corner. Bankrate.com said four in ten people were not prepared for a future recession.
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Chris Everett with Everett Wealth Solutions in Forest Park said she doesn’t think a recession is imminent.
“It just doesn’t seem like it’s right there yet, but when it comes maybe in the next year, two years, three years, I think it’s going to be really significantly ugly,” Everett said.
She said some of her clients have already looked outside of the state for a new place to live.
“Look at some of the property taxes that are out there,” Everett said. “I was looking at cost of living and especially as it relates to property taxes, places like Indiana, Kentucky, Tennessee, Arkansas, you know if you wanted to stay kind of in the midwest and not move too far away from your grandkids, those are states you might even consider.”
Illinois has lead the nation in outbound migration, even during the economic recovery since the Great Recession.
In Illinois, a recession could put already strained government budgets under added pressure, potentially leading to tax hikes. Everett recommended those planning to stay in Illinois for retirement look at ways to reduce costs.
“Maybe reduce some expenses so they can save more because that’s an honest thing to do,” Everett said. “Politicians only know one answer and that’s to increase taxes.”
Everett also suggested homeowners get information on a reverse line of credit. She said talking with a wealth manager could help people prepare.
Bankrate’s survey, released this week, found 44 percent of U.S. adults were actively spending less money, 33 percent were saving more for emergencies, 31 percent were paying down credit card debt, 15 percent were saving more for retirement and 10 percent were looking for a better or more stable job.