7 Ways To Position Yourself For Recovery

In a gloomy economic marketplace, it's easy to have a negative outlook on the future. Many become worried about the state of the economy and simply focus on surviving and staying afloat amidst the uncertainty.

What many of us forget is that economies recover, although we rarely know when. But if you prepare yourself for the road ahead, your financial outlook for the new economy will leave you sitting pretty.

It's important to make sure your investment goals are aligned with your investment time horizon. Reviewing your investments and making sure that those investments are still appropriate for the stage of life you are in or will soon be entering is extremely important.

Individuals approaching retirement will have much different needs from their investments than young graduates just entering the work world. Aligning your goals with your investments is fundamental to being a successful investor. (To read more on investing for your time horizon read The Seasons Of An Investor's Life.)

During times of economic uncertainty, it is not uncommon for interest rates to drop to very low levels. At times like this, it can be in your best interest to take advantage of lower interest rates, especially for homeowners. Locking in at a low interest rate for five or 10 years can save mortgagors thousands of dollars over the course of their mortgage.

Even if you are locked in at a higher rate already, you might still come out on top by remortgaging at a lower rate, even after paying penalties associated with renegotiating that rate. Weighing all your options to make the best decision can really pay off. (For more on locking in low mortgage rates, see Got A Good Mortgage Rate? Lock It Up!)