Good Morning
I find myself feeling "unsettled" and want to "talk it out" with you folks.
I know JUST enough about economics to feel insecure but not enough to really understand the ramifications of all the stimulus, fed easing, conspiracy theories about transfer of wealth, etc. I want to be able to sleep at night with a 60/40 portfolio of index funds. We're working on a goal of building up 3 years worth of living expenses in cash (1 year now).
On one hand my brain says, "Never bet against the US economy, it alwasy trends up." But on the other hand, another part of my brain is saying, "Everythings' different these days...there's lots of conspiracy theories, everything's stacked against the little guy, etc. etc." Plus the 2T dollar aid package and other fed stimulus...what sort of effect can we "end users" expect over the next few years? Inflation? Deflation? negative interest rates? huge jump in taxes? I know no one has all the answers, but I used to always be "smug" and just think, "hey, don't pay attention to the noise, everything always turns around in our great country. Put your money in index funds, ride out the ups and downs, rebalance every year, etc.
So I just want to do my best to make sure our overall wealth is positioned well. 54 years old, "semi retired". We have about 1M 60/40 with a financial advisor (10% of that I manage, in things like crypto, p2p, physical gold and silver etc.) but nothing that will have meaningful effect if it all goes to hell. We have one year's living expenses in cash, and about 60% of our net worth is in mid level apartment units in our home town, almost all paid off, which fund 100% of our living expenses and usually more (1.4M value, 250K owed). I would think this would put us in a great place in terms of higher inflation, no?
Sorry for rambling. It's just that the older and richer I get, the more I have to worry about!
I find myself feeling "unsettled" and want to "talk it out" with you folks.
I know JUST enough about economics to feel insecure but not enough to really understand the ramifications of all the stimulus, fed easing, conspiracy theories about transfer of wealth, etc. I want to be able to sleep at night with a 60/40 portfolio of index funds. We're working on a goal of building up 3 years worth of living expenses in cash (1 year now).
On one hand my brain says, "Never bet against the US economy, it alwasy trends up." But on the other hand, another part of my brain is saying, "Everythings' different these days...there's lots of conspiracy theories, everything's stacked against the little guy, etc. etc." Plus the 2T dollar aid package and other fed stimulus...what sort of effect can we "end users" expect over the next few years? Inflation? Deflation? negative interest rates? huge jump in taxes? I know no one has all the answers, but I used to always be "smug" and just think, "hey, don't pay attention to the noise, everything always turns around in our great country. Put your money in index funds, ride out the ups and downs, rebalance every year, etc.
So I just want to do my best to make sure our overall wealth is positioned well. 54 years old, "semi retired". We have about 1M 60/40 with a financial advisor (10% of that I manage, in things like crypto, p2p, physical gold and silver etc.) but nothing that will have meaningful effect if it all goes to hell. We have one year's living expenses in cash, and about 60% of our net worth is in mid level apartment units in our home town, almost all paid off, which fund 100% of our living expenses and usually more (1.4M value, 250K owed). I would think this would put us in a great place in terms of higher inflation, no?
Sorry for rambling. It's just that the older and richer I get, the more I have to worry about!