oops! Another crazy week in the United States is over. Only 197 remain. The student visa was revoked. Ice tracks and detains international students. Legal residents are deported. Inflation rises. The Social Security Office is closed on X only and official messaging. The trial government workers have resumed. No, they are still fired. Tariffs raise the crazy percentage. The stock market collapsed. The tariffs stopped. (Tariffs for every country outside China are 145%.) Stocks are up. US bonds for sale. Consumer confidence is everywhere. Tariff exemptions for chips and electronic products. No, there will be semiconductor tariffs. The value of the dollar slides. Who can keep up with all the madness? All I know is that my portfolio has done a lot of diving since Liberation Day. On the other hand, I'm pretty sure that families and relatives of the grifter rack made billions of dollars from insider trading.
If you support your current government, I hope you will be richer too. Because if you are poorer than last year, you are the sucker like the rest of us. At least I know I've been cheated. Keep your butt as your pension fund will be hammered in the coming weeks.
Please don't panic
Please don't panic. Grab the towel and always carry it with you. Haha, that's from the Sichiks' “Guide to the Galaxy”. It was an interesting book. Now it’s time to reread it and distract yourself.
Now serious, now Please don't panic. If you are young and do a good job, keep saving and investing. A bear market is the best time to accumulate more shares. Stocks will fluctuate again next week, but you have to continue investing. A portion of each salary and the average of your portfolio will look great in 20 years. The United States will recover from it just as we have recovered from many other disasters in the past. This time it won't be any different.
That is what I tell young people, but what about the elderly who are closer to retirement? If you plan to retire at any time, your return risk sequence has arrived. Basically, you will start to exit the retirement portfolio at the worst. That's not very good. You can read more about SRR here – How to eliminate return risk sequences. As you approach retirement, you have to be more conservative.
Earlier this year, I moved our investment to the more conservatives who were preparing for the recession. I also had a 5-year cash flow plan, because the work of Mrs. RB40 looks a bit i and we won't invest too much, but we'll be ready when TSHTF.
5 years of cash flow
This is my cash flow plan for the next 5 years. We will be able to maintain our standard of living and continue to enjoy life without selling any stocks.
- 2025: Fire income + rental apartment sales
- 2026: Fire Income + Mrs. RB40 Pension + Joe's Pension
- 2027: Fire Income + Mrs. RB40 Pension + VFMXX (Vanguard's Money Market Fund)
- 2028: Fire Income + Mrs. RB40 Pension + VFMXX (Vanguard's Money Market Fund)
- 2029: Fire Income + Mrs. RB40 Pension + ibonds + 529 Go to college
I feel very calm about my 5-year cash flow plan. Even if the stock market has stagnated for 5 years, we will be fine. I hope not, but we are ready. If your anxiety is not on the chart, improve your cash and bond position. It will help you fall asleep at night.
wrap up
OK, let's summarize. The information of this article is Please don't panic. We can surpass Trump.
- If you are youngcontinue to invest. The stock market will recover from this disaster. This is a great opportunity to accumulate more shares.
- If you're about to retireyou need to be more conservative and have more cash and bonds. This is not the time to gamble in the stock market. The game is blatantly fixed and regular investors cannot make informed decisions. The best thing you can do is find out your risk tolerance and stick to your asset allocation.
Good luck to everyone. Hopefully Ice won't start deporting U.S. citizens next week. Wait, I heard a knock on the door…
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Passive income is the key to early retirement. This year, Joe is investing in commercial real estate with CrowdStreet. They have many projects all over the United States, so check it out!
Joe also strongly recommends providing personal capital to DIY investors. They have many useful tools that can help you achieve financial independence.
