The Federal Reserve on Wednesday, as many economists expected, raised interest rates by 50 basis points. The move came on the heels of four consecutive increases of 75 basis points amid signs the economy is slowing enough to begin bringing down record inflation.

"Given that the hike wasn't as large as the previous increases, it could mean that the Fed appreciates the real and heightened risk of a recession in the near future," says Misi Simms, a portfolio manager at TIAA. "Therefore, taking a more defensive tack could mitigate some downside volatility during an economic downturn. That's applicable for both retirement plan savers and retirees who are managing a portfolio.

"This exercise could start by asking these questions: What types of securities tend to weather economic headwinds better than others? Without abandoning any asset classes, how can I make some adjustments in equity and fixed-income holdings to anticipate a possible recession?"