Not panicking. A can feel the fear in a lot of clients. Telling them not to panic. I'm not sure if they are going to listen. I am now 45 years old and for the first time I feel the fear. I suspect it's age. It's the fact I worry how long this recession/depression will be. Yes we have lots of time, but time seems shorter since we want to retire in 10 years. 20 15 20 years ago in 2006/2007 I kept on plowing money into the market. We were trying to save as much as possible, but we just had less to invest. Now we have a lot more to invest and it's hard to pull the trigger.
I set aside actually about $100k in cash tied up in a CD until June to see where the market goes. I have another $50k in a savings account because I thought I would be moving it into my 401k in April. But I find myself hesistating. I find myself worrying did we bottom out. Before I would have thrown it in and just said let it ride. I know I am a firm believer in not pulling money out of any of our accounts. If we can't afford it we don't buy it.
I've never worried about tapping our investments. I still don't. But for the first time I don't want to put money into our investments because I'm worried. I'm actually nervous. I'm actually a little unsure if I can stomach buying more. how much have i lost? a lot. Seriously a lot of money. Multiples of our annual income.
I do understand you can't time the market. I am a firm bogelhead and buffet devotee. However this is the first time I sit and think maybe I should wait and try to catch the market on the up instead of on the way down. And sitting in cash isn't so bad.
I don't want to pay off our house. it's at 2%. We have no other debt. And this year I was thinking of possibly getting another car. But personally it's off the table because our portfolio is way down. As for my mom? Well she voted for trump and doesn't like to hear that we're losing money and he is directly causing it. She watches only fox news so she has no idea what is real. But it's really hard to not point out that right now our stock market problems are directly caused by the president.
April 8th, 2025 at 11:25 am 1744111503
April 8th, 2025 at 01:46 pm 1744119964
April 8th, 2025 at 10:00 pm 1744149639
Worst case scenario, there will never be another free and fair election in the US - never meaning ‘not for a long time.’
It is possible that martial law will be imposed.
We could go to war with any or all of the rest of the world.
Education as we know it could end.
All forms of social programs - Social Security, Medicare, Medicaid, ACA, VA Benefits, SNAP, WIC - could go away
All weather forecasting, FEMA, CDC, NIH could go away.
National parks and tribal land could be sold to whoever the President chooses.
Due process could end.
Even American citizens can be sent to labor camps outside the US.
Money in the bank seems safer than money in the Markey, but run away inflation can undermine the value of money.
Each of us has to decide what we think is worst case scenario in deciding what to do next.
I wouldn’t pay off a mortgage regardless of interest rate.
I wouldn’t take on any new debt either.
I won’t be making any major purchases, but I am buying a reasonable amount of staples that are shelf stable.
April 8th, 2025 at 11:19 pm 1744154352
We just have to see how things are going
April 9th, 2025 at 05:18 am 1744175894
I also keep telling myself and those around me to look at how this is another great buying opportunity. A part of me is chomping at the bits to buy into it, though I’m going to wait a bit more, as I don’t think we’ve seen the bottom of this lame tariff drama yet.
If anything, what really bothers me is how, instead soothing nerves or guiding the people to a better place, Trump instead can’t wait to tell people how he “won” the weekend Golf tournament. I have never seen a more tone deaf leader in my life.
April 9th, 2025 at 01:57 pm 1744207037
If inflation hits, the house’s value will grow, and the money required to pay on it will be available with much less work.
If you have money that you are not using, buy a year’s supply of non perishable goods. Then invest the rest in Laddered CDs with three months of expenses renewing every 3 months.
If recession hits, rent out a room or two to help pay the mortgage - plenty of people will be looking for lower cost housing.