How to Protect Your Finances During a Recession! (By Age)
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- เผยแพร่เมื่อ 23 มิ.ย. 2022
- How to Protect Your Finances During a Recession! (By Age)
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its taken me this long to fully realize im a huge nerd for this stuff
Funny you said that. I had this on listening in the car and thought "I'm a weirdo. 33 years old driving home from hockey listening to the money guy" . Its cool to know other people have similar mindset and habits. We're all in this together. Wild times we are in and wilder times ahead I think.
Same, things that seem so obvious but so many ignore
me too!
Good calls, the wilder times are here. Wilder times ahead, I say 1-2 years of a bear market
I’m retired at 61 now 68. I have always managed my portfolio and now that I’m retired I treat it as a left time job. I spend 3-4 hrs a day watching/reading financial information. I’m at the level of listening to earning calls. I’m not a professional analyst but understand the overall important detail. 10 % of my portfolio is invested is some of the IPOs from 2019-2022. An example is I have a 1% investment in ABNB. I keep 3 years of living in Treasuries and CDs (4.1 -5.3%) 3 months to 10yrs. Good luck everyone
I've experienced the 2000, 2008 and 2020 crash. I think it is important to try to maintain a LARGE contingency fund. Also, to be ready to deploy cash in a crashing market. That's where a lot of your future gains will come.
How large of a fund above and beyond your 3-6 month E Fund?
Holding cash for a crashing market is not a good idea. Too many studies that money in the market is better than timing the market.
@@chrismanzi77 I'd agree except with the exception of buying after confirmed drops, dips & all time lows (VTI is still under $200).
As someone who has been through 2 layoffs and am now 30. Focus on paying off debts if you can get them paid off within 6 months. Not having a car payment helped me alot the last time I got laid off. Also building up that cushion helps alot
Well done and I would add not not listening to the financial media but also the media in general. They do not have your interests in their reporting and they have become “tabloid” like offering very little information that is actually “helpful” to the public. Pay yourself first, listen to these gentlemen, be generous for the greater good, never “show off” ( humility is a virtue) . Don’t worry about the economy ( the government has its own interest’s in mind so if you make money so will the government).
I am in my twenties and you guys are correct; I was too young to care about the economy the last time we went through a recession. This is new territory for me however I am very excited because I know this will open up so many opportunities.
Thank you for the helpful tips in this video!
As a 25 year old, the closing pitfall of the “in your 20s” segment @10:50 really hits home. The emotional insecurity, that comes with constantly viewing other people’s highlight reels, is no longer worth the benefit of social media for me. I’ve been blessed to experience multiple lifetime bucket list items in the past year. However, I find myself minimizing their significance due to the normalization of such experiences on people’s feeds.
Takeaway: I deleted social media apps off my phone and my personal life satisfaction has been steadily replenishing. If you’re looking for a sign to do the same, and made it to the end of this waaayy too long comment, I’d encourage you to give it a try.
Social media is destroying Society. Read "Stolen Focus" you'll see what I mean
@@bisonfan715 thanks for the suggestion. I’ll check it out!
It wasn’t too long, because it was full of truth.
Almost 25 here too, somehow everyone is on vacation nonstop while I’m in the wage cage every single day. Just deleted my last social media that I was holding onto, Instagram
Totally agree with you mate
Love the Money Guy Show and recommend it to all my family and friends! Would love to see a future program about navigating the 10 years prior to retirement. What should we be considering/doing 10 years out, 5 years out and 2 years out?
i am 32 now just started building decided no matter what the red looks like, every month I am putting in something. as long as the world does not end it will go back up at least that is what I think
I love the way Bo says 'Because' 😂
I just got a moment to check my feed on TH-cam and saw your new episode and title! Excited to hear this episode’s content! Thanks to y’all we are now maxing out our Roth’s!
Such valuable content for just a precious time of uncertainty but also opportunity! Thanks for the amazing content Brian & Bo! :)
Thank you for the encouragement during this recession. It's just as important as the hard data. You guys rock.
perfect timing on this! my wife and i were just having the discussion of how we should be structured during a recession. im excited to watch later
Wow....what a great in depth analysis on direction.
I watch a lot of creators in the personal finance and investing space, but I always get excited when the guys drop these "By Age" videos!
You guys are the greatest. I try to share your videos and info with the people that I know. Great financial advise.
I've learned a lot from you guys even though I'm a veteran in finance and investment. Your knowledge and wisdom are what I need to continuously stay laser focused. Thank you very much for sharing!
Would be great to have chapters added to the videos! Thanks for the content.
Thanks!
Should've went to you guys first before I went on an internet rabbit hole on this topic! Love this content!
The show opener is so true. Bo and I are the same age, and I feel the same way. I'm always thinking the sky will fall eventually.. even though I'm doing well. Kinda wish I had the optimist view, but the pessimist view caused me to get my financial house in order.
I wish this was available to me when I was in my 40's. So, I'm a little behind but catching up.
Hey guys,
love the show. Thanks for what you do.... btw, I miss the old set...just sayin'
I definitely see the increase in the sales pitch for the Financial courses😂 I absolutely love it!! Got to increase the cash flow to buy more stocks at these discounted prices!!! Keep up the good work boys
Love this show. I learn something new every time I watch.
can you guys go over what to do with a big settlement win
I’m 27 and about 12 years ahead of where I need to be :) and a single mom! It’s all your mindset.
I love that coozie. I want to buy them and hand them out to some young people in my life. Why is it not listed on the products page of your website? Brian, take my money!
25 and currently finishing off my family's debt, so that'll make me 20% return on the year. BUT with the recession in place, I've shift focus from putting most towards debt to making sure I have 3-4month worth in savings
I'm really early to this but can you guys make a video on what to do when you are nearing retirement? What you should potentially be doing with your money /moving it, how withdrawals work, etc.
@Keagan Botsford I'm speaking more towards what would they consider to be safer assets, when to transition to them, and how to go about it. Hope that makes sense.
I really enjoy your channel and the episode. I found the "V-shape" recovery talked about in ther 40s segment very useful, but I would have liked that to also be talked about in the 50s segment. Implying that it would take 7.4 years to recover from a 40% decline makes no sense when the data provided in the 40s segment shows recovery is much faster. It was great to remind folks that you need a higher rate if return than the decline due to the denominator being smaller was great. My reason for the comment is to acknowledge that if someone just watching the 50 segment may consider a much heavier cash position than needed. There is also risk being too heavily invested in cash late in life and out living your money. Again, i really appreciate your channel and the way you present data to show where you are coming from. Thanks
I'm currently holding onto $10K in Yotta Savings & Current (10 months of my bare bone expenses, or 5 months if I was on my own).
I am BUYING. Three years from now I will have HUGE GAINS
Just keep putting cash in every week. No need to worry about timing the bottom.
Love the 6am upload!
I just bought a behavioral economics book. Never thought that would happen. 😂
Great episode guys. Took this opportunity to move more out of cash and back into play. Currently 39 and concerned, but this too shall pass. Appreciate your wisdom and looking forward to the future.
Are dividends in included in the money multiplier?
A sustainedly bad economy (or, more accurately, sustained bear market) is wonderful news for a young person who can stay employed during that time. You have all of the time in the world to recover, and everything is super cheap right now.
I need a co-pilot, but do you guys do any work in Canada?
I would like to know if you guys did a show on entrepreneurs self employment pension And solo 401K
It is cool that even at 49 years of age, one can recover more of their income than they are saving (27% vs. 25%). Obviously, they would likely be living on the complement (75%) while saving, but that 27% at the end is going to be more than 36% percent of what they are living on while saving. (I say "more" because I am not even factoring in wage growth).
Like other commenters, I'm disappointed you left out the 60's and into retirement, or someone who is already retired - and how to protect themselves!! I have retired, last year, and my husband was planning to retire this summer. But now, we think to protect ourselves, that while he can, to keep earning money. We do have a very good financial advisor and we feel comfortable we could retire ... but we'd feel more comfortable having more cushion. I'd love to hear you talk about what you would do if you were at age 65 and still working right now - would you retire, or would you wait? Would you move the balance of your mutual funds/401K into certain markets (U.S. vs. foreign; and more stable vs. purchasing stocks that have gone down)? Generalizations and whys would be interesting at my age.
They’re unlikely to ever get into that. Too many “it depends”. For something along those lines, I’d recommend checking out oak harvest financial’s channel.
When retired a recession can be very scary. You still need to withdraw money from your retirement nest egg, but the value of $5000 is going to be a larger percentage of your funds. What I do is to have a near-cash bucket of short-term muni-bonds that will cover the next four years. My annual income will come from that bucket. This is only about 20% of my total nest egg and I will move money into that account as the market recovers. This way I’m confident that I will have money during the recession. Since a recession is generally 6-18 months long, I’m fairly certain that I’ll be ok.
Hard to say we are in a recession when year to date GDP is up, wages are up, consumer spending is up, and unemployment rate keeps going down. (According to BEA and Deloitte Econ desk). The fed is tanking stocks and housing (housing will lag) with rate increases and hopefully it will reduce inflation. I’d expect a bit more nuance from my advisor, but love the MG content.
Dividend growth investing means I don’t ever have to draw down my portfolio.
Wow, I came out of college during Reagan, 1985. You guys are young and yes, it influenced me.
It takes ~45 years for 1$ to turn into 88$ at 10% return. Even if you start investing at 30, and can wait until 70 to take the RMD from a 401k you're darn there there. So it's never too late to invest!
Market seems to bounce back.
MONEY GUY
I am 65 and my husband is 69. We are retired
with a pension, savings, and no debt. This
downturn is very scary for us because we are no
longer earning an income. You left us out of this
discussion! What should we do?
You should talk to your financial advisor. What's your question for us that they, or you, don't have an answer for?
Life stops at 40?
I’d say it depends on what’s leftover from your monthly pension income minus your base line monthly expenses. The closer you are to paycheck to paycheck the more I’d be worried. But if you have a healthy savings plus are adding to that/can add to that with your base line expenses you’re most likely fine.
65/69 still young. I wish the money guys provided more relevant discussion applicable to all, like Dave Ramsey does. If your health allows, I would consider to continue working as long as possible and continue to save/invest for peace of mind during this downturn. The good news you are in good shape with no debt and income and savings.
You were supposed to have prepared for this while you still had income.
Social media is NOT real- not a reflection of real life. Yes- so true!! I sent this to my 22 YO son… he graduated college and with COVID got in to real estate and purchased two rental invoice properties and got his first listing to sell since he started his real estate career. I wanted him to get a job after college but he is doing totally different than what we expected. But it is his life and he is making a living with other side business flipping things. I do worry about things he is missing out like 401K, insurance etc. he did max out his Roth last year at $6K and again this year… hubby and I (both turning 55 soon) are saving and want to leave legacy money for our boys. We r on pace to be decent since we have life insurance, health insurance, retirement funds, savings, etc. thank u for your show providing realistic and helpful info!! 🙏🏻👍🥰
You say social security will add to retirement but my pension plan doesn't work that way. As of right now i can retire at 55 with full benefits.
My retirement choices are:
1: Get all pension money minus SS.
2: Chose at what age when i recieve SS,
then my company pension is reduced by
the amount of SS i recieve.
3: If i leave my wife a suvivor benefit, then
my pension is cut in half.
I alway thought that what i put in SS i would recieve on top of any pension i earned, man was i wrong.
When opening an account who should people go with? Fidelity, Vanguard or TD?
You are in the right path, because all 3 of those brokerages are solvent and have money saved just in case we go in a recession and u need to pull ur money out u can. What is going on with celsius right now will happen with alot of brokerage accounts. So the three u named are great just pick one. I personally use vanguard because i love vanguard’s indexes. But most employers use fidelity. So u can have all ur accounts there.
Could you just give people many ideas about where to put money safe without talking about where not and other stuff
I want to hear just one time that Bo isn't excited about a show.... just ONE TIME BO!
I love your show but one of my concerns is that you assume that the market will come back to “normalcy” energy or fuel is been depleted and it is what runs the economy. Also, the USA will slowly slow down and another country will become more powerful (China, India, Russia, etc) or equal diluting the overall economic power observed in the past 100 years.
Hey guys,
Great show! Quick question, when you say to save 25% of gross income. How do I calculate that?
To be specific, both my 401k and IRA are Roth, so after taxes.
So, if I made 100k a year, should it be 25k into the accounts (which would be 25k plus taxes) or should it be 25k minus taxes.
Thanks!
Hi WIlliam, not part of the team but from what i have gathered from Brian/Bo and others. In your case it would be $25,000 to be saved. That would be post tax dollars and doesn't get adjusted based off your tax rate and so on...
Hey, I-Bonds are at 9.62%. Good idea to include them right now?
Yes, but you can only invest $10,000 per person.
Or…..what your now adult kids in their 20s saw their parents go through and the loss of their home and rooms in their early teens, has made them say “ oh heck no” to anything to do with the stock market. They won’t even start a 401(k). Stock market equals trauma and loss to them.
This is can be true for a lot in that age range, but the gains in the stock market (especially the last few years) had gotten many people involved in the stock market for fear of missing out
The thumbnail for this one...
Hey Bo we are not officially in a recession. A recession is defined as two quarters of negative growth. That hasn’t happened yet and may not happen.
I am not looking forward to doing the net worth statement in January. We would have met some goals this year, but I'm afraid that all of our investments will be cut in half or more. 😬😭
I needed to hear the - don't move to cash, don't time the market reminder.
Run for your lives, it's the end of the world!! LoL
Humans have felt that way throughout history. Sometimes it becomes self fulfilling.
Is emergency fund 3-6 months of expenses, after tax income or gross income???
Why would income matter? Its about expenses not income
After tax, because it’s to cover the expenses you usually have. Insurance in case you lose your job/income.
(But also for emergencies like car repairs, etc)
My recommendation for people in their 20s to strive for is: Have 3 months emergency fund in place. Get (at minimum) employer match on 401k. Max out Roth IRA account. Max out HSA account.
Can you explain the why behind this?
@@neycongjuico7395 not to speak for Nick but 1) A 3 month emergency fund (separate from investments) may save you in the event of job loss , sudden life change etc. 2) company matching your 401k contributions essentially doubles your 401k investments, on the company’s dime. 3) maxing out tax-deferred Roth IRAs while young is ideal because compound interest increases your portfolio exponentially the longer you stay invested. Staying invested in the markets for as long as possible gives you the biggest potential for growth
@@neycongjuico7395 essentially what Perry said. An emergency fund is important for if you lose your job. Getting the match on your 401k will increase your 401k account substantially over the long run and it’s FREE MONEY from your employer. Investing inside of Roth IRA and HSA accounts is very important because they both grow TAX FREE. The HSA is unique in itself because you contribute to it TAX FREE. Plus withdrawals and investment gains and also TAX FREE. As long as it’s used towards your health/medical expenses, hence HSA = health savings account. Meaning you’re able to pay your medical expenses with untaxed dollars. If you’re not putting your money in an HSA account before paying for any medical expenses then you’re literally paying more for your medical expenses than you need to. In all, the main takeaway is FREE money from 401k employer match, TAX FREE money from ROTH IRA and HSA.
None of the things this two are pushing beat inflation.
Invest, find cash, control debt, repeat. 🇺🇸
Shouldn’t some people that are in their 20s now have some experience with market crashes? We just survived a 30% market crash in March 2020.
So, when did it actually start...?
Allocate my money to a stable value fund or ride it out and wait for the come back ?!
Did you watch the video? They discussed what to do based on your age. Maybe watch again if needed.
I'm leaving my job shortly, but they don't know how they're going to replace me. I've become indispensable and they didn't realize it until they started trying to get a replacement.
When the market goes down then it's buying opportunity. If the market goes up then you are making money. If you stay invested and ignore the market's ups and downs, you'll make a lot of money in the long run; however, a severe market correction causes a lot of margin calls and sell-offs, driving the market even lower. currently, I'm up 13% in my diversified portfolio. As crazy as it sounds some still make enormous returns from this seemingly unknown market. gotta be greedy when others are fearful..
@Maxwell Sidney
Just go with index funds. You can't go wrong with those.
Eveyone under age 40 needs to plan for $0 social security. Very possible..
Buy VTI and go to sleep during accumulation. 5-7 years before you plan on using your investments introduce bonds for stability. Before you leave the work force pay a fee only advisor to comb over your plan for mistakes & unknowns. This is a recording.
And us 60 yr olds?
If your 60 and have no retirement you will be working until you die or have health problems.
@@bones6554 have retirement....been blessed
Why can't I see? The screen is green!!!!
Come on Bo and start off please just once without being so excited about this episode .
we definitely dont wanna disability.
For someone in their late 30s, should I cashout my portfolio or let it ride?
Oh my. Did you watch the video?
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We MIGHT be in a recession. Still haven’t had 2 quarters with negative GDP growth. We have to wait until the July numbers to come out. Come on guys, this is basic research
This is going to be an ugly downturn though.
What a wonderful opportunity.
@@michaelswami very true….if you have cash!
I'm selling my overpriced house and going 100 percent high risk when the market bottoms at 16k. Moving in with my kids till then. Revenge is a bitch. Ha ha.
Do you really honk the market will go that low?
@@genxx2724
I hope not but I've seen some crazy things in my 50 years on this planet.
Why try to time the market. Just DCA it.
What's dca
Dollar cost average?
According to Biden we are not in a recession lol