Tag: bear market

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QA10: Bear Markets and Bank Failures

We’re back to the digital mailbag to answer your questions!

For this week:

  • Are new investors part of an “unlucky cohort” that won’t achieve financial independence in the often-cited timelines?
  • Is it worth it to hire a tax professional? And if so, how should I find one?
  • Can you help me understand all these confusing public sector retirement accounts?
  • Should I do a Roth conversion now or just make a contribution to a Roth IRA?
  • Thoughts on the recent bank runs and instability in financial markets
  • So much more!
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Can The 4% Rule Actually Work For Early Retirement?

The 4% rule suggests that a retiree who withdraws no more than 4% of their portfolio each year could have provided for a 30-year retirement window during most historical retirement windows. And that is true! The problem is that the FIRE community, however, perpetuates at least two misconceptions when discussing the 4% rule. Today, we address those common misconceptions about utilizing investment income. And, most importantly, we discuss how to use a flexible withdrawal strategy to weather bear markets and/or reduced future returns.

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QA8: What If We Run Out of Water?

We’re back to the digital mailbag to answer your questions!

For this week:

  • Thoughts on the bear market
  • Getting invested with a Health Savings Account
  • Paying for education with retirement accounts
  • My philosophy on rest from climbing
  • How to develop financial mentorship in the climbing community
  • Travel and rescue insurance ideas
  • Determining a cost-effective approach to climbing destinations
  • Should I open an IRA if my employer doesn’t offer a 401(k) match?
  • How to not get wrecked moving from sport climbing or bouldering to trad climbing
  • The risks of owning property in an area that could be running out of water
  • Getting a home loan with inconsistent income history
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Your Questions Answered: Volume 6

Hello! We’re back in the digital mailbag to answer your questions.

In this Q&A episode we take a hard look at inflation, the reality of a bear market, tactics for balancing a career and climbing, saving for a home down payment, my dream interviews, the pros and cons of maxing out retirement plans, cryptocurrency, financial advisors, and traveling the world for cheap. And of course, so much more.

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Shocking Headlines of the 2008 Financial Crisis

(And Why They Are So Important Now)

I don’t want to talk much about the novel coronavirus today. I want to talk about money, because that is what I do here. Money may not be a priority for you and your family now amongst a spreading virus. However, I want to calmly acknowledge that the world is also facing a very real personal finance threat, one that could be far more impactful for most Americans than the virus itself (which I’m not taking lightly). Before we make rash decisions in a time of panic and hysteria, let’s examine some important headlines from the 2008 financial crisis and why those messages are so incredibly important right now.

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The Sky is Falling: Lessons from the Coronavirus

Happy Monday! What a week! The coronavirus is spreading like southern Kudzu and is now officially a pandemic. Social distancing is suddenly the new order, flaming a wildfire of fear and panic, crippling the economy. The stock market is currently down 20% from its February high. The S&P 500 dropped 9.5% in a single day. And then the very next day the market bounced back 9.3%. We have entered bear market territory, ending the historic 11-year bull market run. OPEC meddling crashed oil prices. And I just quit my job. We have (had?) big plans for a new way of life. So, what’s changed?

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You Know A Recession is Coming, Right?

A year ago, in December 2018, I wrote two posts concerning the “imminent” recession: Five Ways to Recession-Proof Your Life and Keeping the “Safe” in Safe Withdrawal Rate. Well, a year has come and gone, and as I write this in December 2019, we are at yet another all-time high in the stock market. America’s longest bull market continues gouging ahead like those fiery beasts in the narrow streets of Pamplona, Spain.

Is this time different?

For those of you out there beginning any sort of retirement (early or not), is your timing perfect or incredibly unfortunate?

How about if you are wondering if now is the best (or worst) time to start investing?

Let’s have a look…

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