How to SURVIVE and GET RICH During a RECESSION! | Networth & Chill

00:31:14
https://www.youtube.com/watch?v=OLH7L8owqAc

摘要

TLDRThe video provides insights on how to recession-proof your finances and leverage economic downturns for wealth building. It explains that recessions are a normal part of the economic cycle and offers strategies such as maintaining investments, increasing savings, and focusing on consumer staples for job security. The host encourages viewers to invest in index funds and highlights the importance of financial planning during uncertain times. Additionally, it introduces AskDolly, a tool for accessible financial advice.

心得

  • 📉 Recessions are normal and can be opportunities for wealth building.
  • 💰 Don't pull your investments during downturns; stay the course.
  • 💵 Aim for 6 to 9 months of living expenses in savings.
  • 📊 Consider investing in index funds for broad market exposure.
  • 🏥 Consumer staples tend to outperform during recessions.
  • 🛑 Avoid high-interest debt; pay it down as a priority.
  • 🔍 Explore stable job sectors during economic uncertainty.
  • 🛏️ Use AskDolly for accessible financial advice.
  • 📈 Time in the market beats timing the market.
  • 🛒 Economic downturns can lead to better investment opportunities.

时间轴

  • 00:00:00 - 00:05:00

    In your adult life, you will likely experience five to seven major economic downturns, which can be significant opportunities for wealth building. Wealthy individuals often capitalize on these moments by investing when others are fearful. This episode discusses strategies to recession-proof your finances, emphasizing the importance of staying calm and making informed decisions during economic uncertainty.

  • 00:05:00 - 00:10:00

    The S&P 500 index, a key indicator of the U.S. economy, has been volatile, causing anxiety about a potential recession. A recession is defined as a significant decline in economic activity lasting more than a few months, typically marked by two consecutive quarters of negative GDP growth. Understanding that recessions are a normal part of the economic cycle can help alleviate fear and prepare for financial success.

  • 00:10:00 - 00:15:00

    To recession-proof your finances, avoid pulling investments during market downturns, as this locks in losses. Instead, consider downturns as opportunities to buy assets at lower prices. Additionally, increase your savings to cover six to nine months of living expenses in a high-yield savings account, ensuring your money is working for you while providing a safety net against economic challenges.

  • 00:15:00 - 00:20:00

    Pay down high-interest debt and avoid taking on new debt during uncertain times. If struggling, consider nonprofit credit counseling for assistance. It's crucial to manage your finances carefully, especially during economic downturns, to avoid feeling overwhelmed by debt burdens and to maintain financial stability.

  • 00:20:00 - 00:25:00

    Investing during downturns can lead to significant wealth accumulation. Wealthy individuals often take advantage of lower prices to invest in stocks, real estate, and businesses. If you have extra funds, consider investing in index funds or target date retirement funds to diversify your portfolio and mitigate risks associated with individual stock picking.

  • 00:25:00 - 00:31:14

    Job security can be a concern during recessions, but certain industries, such as consumer staples and healthcare, tend to perform better than discretionary sectors. Understanding which sectors thrive during downturns can help guide career decisions and job stability. Ultimately, consistent investing and a long-term perspective are key to navigating economic cycles successfully.

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思维导图

视频问答

  • What is a recession?

    A recession is defined as a significant decline in economic activity lasting more than a few months, typically marked by two consecutive quarters of negative GDP growth.

  • How can I recession-proof my finances?

    Strategies include not pulling investments, increasing savings, paying down high-interest debt, and considering index funds for investment.

  • What industries thrive during a recession?

    Consumer staples like healthcare, financial services, and energy tend to outperform during economic downturns.

  • Is it a bad time to start investing?

    No, market downturns can be a great time to invest. The best time to start investing was yesterday, and the second best is today.

  • What should I do if I'm worried about job loss during a recession?

    Consider looking for jobs in industries that are more stable during downturns, such as consumer staples.

  • What is the FDIC?

    The FDIC is insurance for your money in the bank, protecting deposits up to $250,000.

  • Should I pull my investments during a downturn?

    No, pulling investments locks in losses. It's better to stay the course.

  • How much should I have in savings during economic uncertainty?

    Aim for 6 to 9 months of living expenses in a high-yield savings account.

  • What are index funds?

    Index funds are investment funds that track a specific index, allowing you to invest in a broad range of companies.

  • What is AskDolly?

    AskDolly is a tool for asking financial questions without needing a high net worth to access financial advice.

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  • 00:00:00
    in your adult lifetime you're likely
  • 00:00:02
    only going to see five to seven major
  • 00:00:05
    economic downturns and they are going to
  • 00:00:06
    be your biggest opportunities to build
  • 00:00:09
    wealth let's be very clear rich people
  • 00:00:12
    actually love these moments because
  • 00:00:14
    they're going to rapidfire deploy their
  • 00:00:16
    money into investments when everybody
  • 00:00:18
    else is freaking out let's talk a little
  • 00:00:21
    bit about how you can recession proof
  • 00:00:22
    your finances these are a couple
  • 00:00:24
    strategies you can use to set yourself
  • 00:00:26
    up for financial success no matter what
  • 00:00:28
    the economy throws at us support for
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    today
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    what's up rich friends welcome to
  • 00:01:24
    another episode of Network and Chill i'm
  • 00:01:27
    your host Vivian 2 aka your rich bff and
  • 00:01:30
    your favorite Wall Street girly with the
  • 00:01:31
    implementation of Trump's tariffs and
  • 00:01:33
    downward market movement people are more
  • 00:01:36
    stressed than ever about a potential
  • 00:01:39
    recession yes it's scary and it shows
  • 00:01:42
    the S&P 500 index which is essentially
  • 00:01:44
    the benchmark for the American stock
  • 00:01:46
    market has been pretty volatile lately
  • 00:01:48
    and the S&P 500 measures the performance
  • 00:01:51
    of the 500 largest publicly traded
  • 00:01:53
    companies in the United States so it's
  • 00:01:56
    pretty indicative of the overall health
  • 00:01:58
    of the economy the S&P 500 is widely
  • 00:02:00
    considered one of the best gauges of the
  • 00:02:02
    US equities market and like I mentioned
  • 00:02:05
    it is a benchmark so when we're looking
  • 00:02:08
    at it and we're seeing it go down that
  • 00:02:09
    can be kind of scary if the S&P is going
  • 00:02:12
    down down typically it's an indicator
  • 00:02:14
    that the US economy is feeling pretty
  • 00:02:16
    down too now it's important to know that
  • 00:02:19
    at this moment that I'm filming and
  • 00:02:21
    maybe while you're seeing this we are
  • 00:02:24
    not in a recession technically if a
  • 00:02:26
    recession does come it will be declared
  • 00:02:28
    by the National Bureau of Economic
  • 00:02:30
    Research NBER it's a nonprofit
  • 00:02:33
    organization but with all this economic
  • 00:02:35
    volatility people want to know how to
  • 00:02:37
    prep for a recession or just how to get
  • 00:02:39
    through times of economic downturn and
  • 00:02:42
    that's exactly what we are going to
  • 00:02:43
    cover today so first and foremost what
  • 00:02:46
    is a recession like actually a recession
  • 00:02:50
    is defined as a significant decline in
  • 00:02:52
    economic activity that's spread across
  • 00:02:54
    the economy and lasts more than a few
  • 00:02:56
    months typically two straight quarters
  • 00:02:59
    of negative GDP gross domestic product
  • 00:03:02
    growth so when we see the GDP go down
  • 00:03:04
    two quarters in a row that's typically
  • 00:03:06
    when it is a technical recession first
  • 00:03:08
    and foremost it's important to remember
  • 00:03:10
    that recessions are a normal part of the
  • 00:03:12
    economic cycle though their severity and
  • 00:03:14
    duration aka how serious or how long
  • 00:03:17
    they go can vary a lot they represent
  • 00:03:20
    the contraction phase following periods
  • 00:03:22
    of economic expansion so really really
  • 00:03:25
    simplified a normal economic cycle
  • 00:03:27
    consists of four stages first up
  • 00:03:30
    expansion things are on the up then
  • 00:03:32
    there's the boom things are up then
  • 00:03:35
    there's the bust things are coming down
  • 00:03:38
    and then there's the recession things
  • 00:03:40
    are down this then leads back into
  • 00:03:42
    expansion and the cycle repeats and
  • 00:03:44
    repeats and repeats while not ideal by
  • 00:03:46
    any means just know recessions are
  • 00:03:48
    considered part of the normal economic
  • 00:03:50
    cycle so there's no use in spiraling and
  • 00:03:53
    now that we've got the textbook
  • 00:03:55
    definition cleared up let's talk a
  • 00:03:57
    little bit about how you can recession
  • 00:03:58
    proof your finances these are a couple
  • 00:04:00
    strategies you can use to set yourself
  • 00:04:02
    up for financial success no matter what
  • 00:04:05
    the economy throws at us first and
  • 00:04:07
    foremost do not pull your investments
  • 00:04:09
    the second people see market downturn
  • 00:04:11
    they immediately want to sell sell sell
  • 00:04:14
    pull all of their money out of the
  • 00:04:15
    market and pull their investments do not
  • 00:04:17
    do this if you pull your investments
  • 00:04:19
    you're just going to lock in the
  • 00:04:21
    existing losses rather than giving your
  • 00:04:24
    portfolio a chance to go up again and I
  • 00:04:26
    know it's super scary looking at red
  • 00:04:28
    numbers but avoid pulling that money if
  • 00:04:30
    you can a really great example of this
  • 00:04:32
    was co back in March of 2020 we saw the
  • 00:04:36
    stock market
  • 00:04:38
    plummet and the folks who got scared and
  • 00:04:40
    pulled their money locked in those
  • 00:04:42
    losses however if you were smart and
  • 00:04:45
    just stayed the course you held on to
  • 00:04:47
    your investments you didn't look too
  • 00:04:49
    much at your portfolio by August of 2020
  • 00:04:52
    all of those losses would have been made
  • 00:04:54
    up and then over the past five years we
  • 00:04:56
    actually saw the market reach its newest
  • 00:04:59
    highs the peakiest of peaks and you
  • 00:05:02
    would have just made money in fact when
  • 00:05:04
    the stock market is down you can think
  • 00:05:06
    of it like a sale nobody runs from a
  • 00:05:09
    sale at a department store why would you
  • 00:05:11
    run from a sale in the stock market in
  • 00:05:13
    fact if you actually have extra dollars
  • 00:05:15
    to be investing when there is a downturn
  • 00:05:18
    it might be one of the best
  • 00:05:20
    opportunities for you to scoop up assets
  • 00:05:23
    on the cheap everybody loves a deal so
  • 00:05:25
    yes it's okay to look at your portfolio
  • 00:05:27
    but if you think it's going to actually
  • 00:05:28
    just hurt your feelings and scare you
  • 00:05:30
    more than it'll help you stay in touch
  • 00:05:32
    with your holistic financial picture
  • 00:05:35
    it's okay to more sparingly check your
  • 00:05:38
    investments right now up next speaking
  • 00:05:40
    of up let's up your savings normally I
  • 00:05:44
    always recommend you guys have three to
  • 00:05:46
    six months of living expenses in an FDIC
  • 00:05:48
    insured high yield savings account but
  • 00:05:50
    with economic uncertainty try to get
  • 00:05:53
    closer to 6 to 9 months in that high
  • 00:05:55
    yield savings account this way your
  • 00:05:57
    money is earning you more money and
  • 00:05:59
    you're better protected from any issues
  • 00:06:01
    that are beyond your control like
  • 00:06:03
    layoffs but you are actually going to be
  • 00:06:06
    earning money on that nest egg also just
  • 00:06:08
    remember a high yield savings account is
  • 00:06:10
    just like a regular savings account so
  • 00:06:12
    your money is FDIC insured up to
  • 00:06:15
    $250,000 but a quick strategy I do want
  • 00:06:18
    to share is that if you have more than
  • 00:06:20
    $250,000 in cash in one bank account I
  • 00:06:23
    would very much encourage you to spread
  • 00:06:25
    it out across different savings accounts
  • 00:06:27
    so you aren't putting that money at risk
  • 00:06:29
    it's a lot less likely that all of the
  • 00:06:31
    banks you bank with would fail at once
  • 00:06:33
    furthermore when you're choosing where
  • 00:06:34
    to park your money consider national
  • 00:06:36
    banking providers over regional ones why
  • 00:06:39
    you ask because oftentimes bank failures
  • 00:06:42
    stem from too many of the bank's
  • 00:06:44
    customers livelihoods being concentrated
  • 00:06:46
    in one industry so a really great
  • 00:06:49
    example of this was Silicon Valley Bank
  • 00:06:51
    they were a huge provider in the VC and
  • 00:06:54
    San Francisco tech world but because of
  • 00:06:56
    this when one of their clients started
  • 00:06:58
    having issues it meant a lot of their
  • 00:07:00
    clients started having liquidity issues
  • 00:07:03
    this ended up leading to people running
  • 00:07:05
    to the bank trying to get their cash out
  • 00:07:06
    and they when they weren't able to
  • 00:07:08
    service their clients that ultimately
  • 00:07:10
    led to the bank's collapse because when
  • 00:07:12
    one client heard that they couldn't get
  • 00:07:13
    their money everybody panicked and then
  • 00:07:15
    tried to get their money out too up next
  • 00:07:17
    my other hot tip is make sure to pay
  • 00:07:19
    down your debt do your absolute best to
  • 00:07:22
    pay down high interest rate debt
  • 00:07:25
    anything over 7% you want to do that
  • 00:07:27
    ASAP Rocky on top of that do not take on
  • 00:07:31
    any additional high interest rate debt
  • 00:07:33
    and make sure to spend within your means
  • 00:07:35
    on your credit card so that very much
  • 00:07:36
    means spending on things that you need
  • 00:07:39
    and are confident you can pay in full on
  • 00:07:41
    time every single month this is
  • 00:07:43
    certainly not the time not that it ever
  • 00:07:45
    is to risk taking on more debt because
  • 00:07:48
    when things are bad you are actually
  • 00:07:50
    going to feel that debt burden even more
  • 00:07:52
    if you are really struggling this could
  • 00:07:54
    also be a good time to explore nonprofit
  • 00:07:57
    credit counseling so this is where you
  • 00:08:00
    would go and speak to a credit counselor
  • 00:08:01
    they would help you manage your debt
  • 00:08:03
    they would negotiate with your credit
  • 00:08:04
    card companies your you know loan loan
  • 00:08:06
    servicesers and they would get you on a
  • 00:08:08
    good payment plan this is because going
  • 00:08:10
    into a shaky financial environment while
  • 00:08:12
    struggling with debt can be really
  • 00:08:14
    overwhelming up next I would say that
  • 00:08:16
    since we aren't pulling our investments
  • 00:08:18
    we should answer the question of now
  • 00:08:19
    what what should we do in your adult
  • 00:08:21
    lifetime you're likely only going to see
  • 00:08:24
    five to seven major economic downturns
  • 00:08:27
    and they are going to be your biggest
  • 00:08:28
    opportunities to build wealth let's be
  • 00:08:31
    very clear rich people actually love
  • 00:08:33
    these moments because they're going to
  • 00:08:35
    rapidfire deploy their money into
  • 00:08:37
    investments when everybody else is
  • 00:08:40
    freaking out they're going to use this
  • 00:08:42
    opportunity to buy stocks real estate
  • 00:08:44
    and honestly whole ass companies on the
  • 00:08:46
    low they're going to get them for cheap
  • 00:08:48
    and then when things inevitably do
  • 00:08:50
    recover they're going to be able to ride
  • 00:08:52
    that wave right back up so that'll be
  • 00:08:54
    their opportunity to generate a lot of
  • 00:08:56
    growth and a lot of wealth however folks
  • 00:09:00
    who don't have the means or people who
  • 00:09:01
    don't think to invest their money that
  • 00:09:03
    they have on hand right now are actually
  • 00:09:05
    going to be worse off due to inflation
  • 00:09:07
    making our lives more expensive over
  • 00:09:09
    time and I do not have to be the one to
  • 00:09:11
    tell you that the cost of living right
  • 00:09:13
    now is crazy eggs are like $20 so you
  • 00:09:17
    want to make sure you have that managed
  • 00:09:19
    this all said if you are paycheck to
  • 00:09:21
    paycheck and you're more worried about
  • 00:09:22
    buying food than investments I get that
  • 00:09:25
    i do not want to be tonedeaf and I
  • 00:09:27
    really do recognize that this period is
  • 00:09:29
    going to be incredibly challenging this
  • 00:09:31
    is going to hit those folks the hardest
  • 00:09:34
    and it sucks and it's unfair and I I
  • 00:09:37
    wish I we had a better answer for this
  • 00:09:39
    but if you do have any extra money to
  • 00:09:41
    spare or even if you're willing to just
  • 00:09:43
    put yourself in an uncomfortable
  • 00:09:45
    position for a temporary period of time
  • 00:09:48
    by picking up a side hustle or a second
  • 00:09:50
    job this really could be the difference
  • 00:09:53
    between whether or not you are where you
  • 00:09:55
    want to be or financially secure in the
  • 00:09:57
    next 5 to 10 years so think of this as
  • 00:10:00
    an opportunity i don't want this to
  • 00:10:02
    sound like rahrh hustle porn but truly
  • 00:10:05
    try your best try to invest right now as
  • 00:10:08
    for the investments actually what to buy
  • 00:10:11
    instead of telling you my top five stock
  • 00:10:13
    picks I'm going to tell you how to buy
  • 00:10:15
    hundreds of companies at the same time
  • 00:10:17
    you are going to consider something
  • 00:10:18
    called an index fund the reason they're
  • 00:10:21
    called index funds are because they
  • 00:10:23
    often track indexes indexes and as an
  • 00:10:25
    example if you invest through Vanguard
  • 00:10:28
    VO tracks the S&P 500 and the reason I
  • 00:10:31
    want to call out Vanguard specifically
  • 00:10:33
    is because if you invest with Fidelity
  • 00:10:35
    or Schwab they have their own version of
  • 00:10:38
    VO you want to make sure you are buying
  • 00:10:40
    the appropriate one based on what
  • 00:10:43
    brokerage you are using because you'll
  • 00:10:45
    pay less in fees so just make sure that
  • 00:10:47
    wherever you're at they have something
  • 00:10:49
    that tracks the S&P 500 i'm sure they do
  • 00:10:51
    and you're going to be able to use that
  • 00:10:53
    to invest another alternative if you
  • 00:10:55
    want to get a little tech heavier QQQ
  • 00:10:58
    tracks the NASDAQ 100 this is a great
  • 00:11:00
    way to get some of that tech exposure if
  • 00:11:02
    you think that sector is going to be a
  • 00:11:05
    little stronger if you want to get some
  • 00:11:07
    international exposure because you think
  • 00:11:09
    everything here states side is going to
  • 00:11:10
    hell in a hand basket well VXUS again
  • 00:11:13
    this is the Vanguard version there are
  • 00:11:15
    going to be Fidelity Schwab other
  • 00:11:17
    brokerage versions that's the Vanguard
  • 00:11:19
    total international stock index fund so
  • 00:11:21
    it's essentially investing in all of
  • 00:11:24
    these international markets so you can
  • 00:11:26
    also have exposure outside of the US
  • 00:11:28
    alternatively if you don't want to pick
  • 00:11:30
    an index fund you can also choose to
  • 00:11:31
    invest in a target date retirement fund
  • 00:11:34
    this will give you something a little
  • 00:11:35
    bit more tailored to your age and how
  • 00:11:37
    close you are to retirement what you're
  • 00:11:39
    going to do is you're going to calculate
  • 00:11:40
    what year you turn 65 and round to the
  • 00:11:44
    closest year ending in five or zero then
  • 00:11:46
    you're going to pick the target date
  • 00:11:47
    fund with that year in it because you're
  • 00:11:48
    going to see target date fund 2025 2030
  • 00:11:52
    2035 2040 2045 all the way up to like
  • 00:11:54
    2075 2080 so just pick the year that
  • 00:11:57
    most correlates to when you would turn
  • 00:11:59
    65 in addition to that you can always
  • 00:12:02
    tap a robo advisor so you just take a
  • 00:12:04
    quick quiz about your money goals and
  • 00:12:06
    then it will pick a diversified
  • 00:12:08
    portfolio that makes sense for you this
  • 00:12:10
    is a great way to be invested quickly
  • 00:12:12
    and efficiently if you don't want to do
  • 00:12:13
    it yourself but the net net takeaway is
  • 00:12:16
    just keep investing don't be distracted
  • 00:12:19
    by these headlines here's another really
  • 00:12:21
    big topic that people are asking me
  • 00:12:22
    about job loss some people are panicking
  • 00:12:25
    about losing their jobs due to the
  • 00:12:27
    impending recession but what we're going
  • 00:12:29
    to go over is what jobs and industries
  • 00:12:33
    might actually thrive during a period of
  • 00:12:36
    economic downturn and then we'll also
  • 00:12:38
    cover what might be a little bit more at
  • 00:12:40
    risk this is important because like I
  • 00:12:43
    mentioned economic cycles are going to
  • 00:12:46
    favor different sectors our consumer
  • 00:12:48
    economy has high and low points and when
  • 00:12:51
    the economy is booming industries that
  • 00:12:55
    are discretionary aka nice to have and
  • 00:12:59
    cyclical typically outperform this is
  • 00:13:01
    essentially luxury industries things
  • 00:13:03
    that people can go without nice to have
  • 00:13:05
    but not necessities these sectors tend
  • 00:13:08
    to fluctuate with the natural business
  • 00:13:11
    cycle like I mentioned cyclical um so
  • 00:13:13
    you're going to see things like travel
  • 00:13:15
    companies like Hilton Marriott Delta
  • 00:13:17
    United American Airlines tech Netflix
  • 00:13:21
    Amazon entertainment so Disney Comcast
  • 00:13:24
    luxury retail LVMH Nike you get the idea
  • 00:13:27
    this is stuff people don't need need
  • 00:13:30
    those really do succeed during periods
  • 00:13:32
    of economic boom however during times of
  • 00:13:35
    economic downturn such as a recession
  • 00:13:37
    we're actually going to see consumer
  • 00:13:39
    staples that are nonsyclical outperform
  • 00:13:42
    these sectors do not fluctuate with
  • 00:13:44
    business cycles because people need them
  • 00:13:47
    you can't just spend less things like
  • 00:13:49
    healthcare Fizer Merc financial services
  • 00:13:52
    Bank of America JP Morgan insurance
  • 00:13:54
    companies energy Shell Chevron Kico
  • 00:13:57
    Phillips industrials like Waste
  • 00:14:00
    Management or UPS and FedEx this is
  • 00:14:02
    stuff people very literally will have to
  • 00:14:05
    keep paying for no matter how bad the
  • 00:14:07
    economy gets maybe they'll spend less
  • 00:14:10
    maybe they'll you know do less but
  • 00:14:12
    ultimately these are necessities and
  • 00:14:14
    when I say outperform I don't
  • 00:14:17
    necessarily mean won't ever take a loss
  • 00:14:20
    i mean versus the broader market they'll
  • 00:14:22
    do better so versus a benchmark like the
  • 00:14:24
    S&P 500 they will do better so say if
  • 00:14:28
    the overall stock market only returns 3%
  • 00:14:31
    this year because things are down things
  • 00:14:33
    aren't great based on where we are in
  • 00:14:35
    the economic cycle sectors that are
  • 00:14:37
    predicted to outperform staple companies
  • 00:14:39
    could see five or 6% um maybe if we're
  • 00:14:43
    lucky 8% so they'll outperform that 3%
  • 00:14:46
    but it doesn't necessarily mean that
  • 00:14:47
    they're going to be returning 25% like
  • 00:14:49
    we saw the market return last year the
  • 00:14:52
    real takeaway here the major key is you
  • 00:14:54
    don't need to hit a home run every year
  • 00:14:55
    to be a good investor you need to invest
  • 00:14:57
    for a longer period of time and be
  • 00:15:00
    consistent and even though I did name a
  • 00:15:02
    bunch of companies I wanted to be really
  • 00:15:04
    clear you are more likely to succeed
  • 00:15:07
    investing in baskets of stuff versus
  • 00:15:10
    trying to cherrypick the perfect company
  • 00:15:12
    also if you have a job that's less
  • 00:15:14
    industry focused and more role-based
  • 00:15:16
    such as HR or marketing or sales and you
  • 00:15:18
    could work at any company doing those
  • 00:15:20
    things you might find more stability at
  • 00:15:23
    staples staple companies versus
  • 00:15:26
    discretionary ones over the next few
  • 00:15:28
    months or years just something to keep
  • 00:15:30
    in mind if you're considering changing
  • 00:15:32
    jobs or looking for work support for
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    this show comes from
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    Brooklynan here's a question what makes
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    today q&a okay we asked for your guys's
  • 00:16:53
    burning questions about the potential
  • 00:16:55
    recession so we're going to answer a few
  • 00:16:57
    of the top submissions and just in case
  • 00:17:01
    your question doesn't get the answer
  • 00:17:02
    because honestly we had over hundreds of
  • 00:17:05
    submissions for this I want to highlight
  • 00:17:07
    a new tool that I'm building where you
  • 00:17:09
    can ask me and licensed CFPs questions
  • 00:17:13
    without needing to have a half a million
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    dollar net worth and hire a financial
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    adviser you don't need to be rich to use
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    it it's called askdy.com
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    as
  • 00:17:24
    sky.com right now we are getting people
  • 00:17:26
    on our weight list and for the first
  • 00:17:28
    5,000 folks who sign up you're going to
  • 00:17:31
    be invited to beta test this tool this
  • 00:17:34
    is the thing I would have killed to have
  • 00:17:36
    when I was figuring out my finances so I
  • 00:17:39
    hope you love it and I hope it lets you
  • 00:17:40
    access financial knowledge without an
  • 00:17:43
    insane price tag essentially where I
  • 00:17:45
    came up with the idea was now that I'm
  • 00:17:48
    30 now that I'm a multi-millionaire I
  • 00:17:50
    have people banging down the door dying
  • 00:17:53
    to help me with my money they want to be
  • 00:17:55
    my money manager they want to be my
  • 00:17:56
    financial adviser my CFP they want to be
  • 00:17:58
    a part of my business management team
  • 00:18:00
    great but I don't need your help now i
  • 00:18:03
    needed your help when I was 22 when I
  • 00:18:05
    barely had two nickels to rub together
  • 00:18:07
    when I was waiting for my direct deposit
  • 00:18:10
    from my job to hit at 1201 so I could
  • 00:18:13
    leave the bar and actually pay my bar
  • 00:18:15
    tab it's really frustrating to me
  • 00:18:17
    because getting the status and getting
  • 00:18:20
    the licenses you need to become a
  • 00:18:22
    financial adviser or become a certified
  • 00:18:23
    financial planner is really expensive
  • 00:18:26
    and I want to be really clear people who
  • 00:18:28
    get those jobs and get those licenses
  • 00:18:30
    often spend tens of thousands of dollars
  • 00:18:32
    to do so so they have every right to
  • 00:18:34
    want to make money but that becomes a
  • 00:18:36
    self- selecting problem right so the
  • 00:18:38
    people who can afford to become
  • 00:18:40
    financial adviserss or CFPs will become
  • 00:18:43
    them and then they only want to work
  • 00:18:44
    with clients who can afford to pay them
  • 00:18:46
    a significant chunk of change because
  • 00:18:48
    they've already invested so much upfront
  • 00:18:50
    i at 22 did not have that kind of money
  • 00:18:52
    i did not have hundreds of thousands of
  • 00:18:54
    dollars i barely had tens of thousands
  • 00:18:55
    of dollars heck my first year in
  • 00:18:58
    Manhattan when I had a Wall Street job I
  • 00:19:01
    was living paycheck to paycheck because
  • 00:19:02
    my rent was so expensive i really wish
  • 00:19:04
    there was something and someone I could
  • 00:19:06
    have gone to and asked these financial
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    questions and now that's what I am
  • 00:19:09
    trying to build with Ask Dolly i want
  • 00:19:11
    you to be able to go somewhere where you
  • 00:19:12
    can ask questions where you don't need
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    to spend an arm and a leg there's going
  • 00:19:16
    to be a free tier there's going to be
  • 00:19:17
    paid tiers if you want to really have
  • 00:19:19
    one-on-one connection but this is a way
  • 00:19:22
    for you to be able to ask your burning
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    finance money questions and make sure
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    you get an answer in a timely fashion so
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    please check it out sign up for the
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    weight list
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    askdally.com
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    askdly.com i can't wait for you guys to
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    check it out please let me know what you
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    think but back to our submitted
  • 00:19:42
    questions specifically about the
  • 00:19:43
    recession first question based on
  • 00:19:46
    probable volatility do you have
  • 00:19:47
    different approaches for different
  • 00:19:48
    stages of life yes here's my big advice
  • 00:19:52
    you should not be investing the same
  • 00:19:54
    throughout your entire lifetime and it's
  • 00:19:57
    so funny that I'm trying to share this
  • 00:19:59
    pearl of wisdom because my own
  • 00:20:01
    74year-old father will not take my
  • 00:20:03
    advice he is in retirement and 80% of
  • 00:20:07
    his portfolio is still in equities and
  • 00:20:10
    that is a terrible idea because you want
  • 00:20:13
    to make sure that as you get older and
  • 00:20:15
    closer to retirement more of your
  • 00:20:17
    portfolio is focused on wealth
  • 00:20:18
    preservation versus wealth growth when
  • 00:20:21
    you're 20 and you're far away from
  • 00:20:23
    retirement you can afford to be a little
  • 00:20:24
    bit more risky but as you get closer to
  • 00:20:26
    retirement you want to make sure that
  • 00:20:28
    you're actually protecting that money so
  • 00:20:30
    how do you decide what of your portfolio
  • 00:20:33
    should be growth and what of your
  • 00:20:34
    portfolio should be preservation here's
  • 00:20:36
    the quick equation take your age and
  • 00:20:38
    round to the nearest five so something
  • 00:20:41
    that ends in a five or something that
  • 00:20:42
    ends in a zero now that you have that
  • 00:20:44
    number you're going to subtract 10 from
  • 00:20:46
    it that is the percentage of your
  • 00:20:49
    portfolio that should be in bonds
  • 00:20:51
    everything else should be in equities so
  • 00:20:55
    say I'm 42 that rounds to 40 40 - 10 is
  • 00:21:01
    30 30% of my portfolio should be in
  • 00:21:05
    bonds 70% should be in equities however
  • 00:21:09
    if I'm 57 that rounds up to 60 60 minus
  • 00:21:14
    10 half of my portfolio should be in
  • 00:21:16
    bonds the other half should be in stocks
  • 00:21:18
    because essentially as you get older and
  • 00:21:20
    older you want to focus on that
  • 00:21:21
    preservation additionally on this note I
  • 00:21:24
    really encourage you to understand where
  • 00:21:25
    your risks lie because sometimes
  • 00:21:29
    people's portfolios get very heavy on
  • 00:21:31
    one thing without them realizing a big
  • 00:21:33
    risk here is company stock options if
  • 00:21:36
    you hold a ton of your company stock I
  • 00:21:38
    need you to think deeply about is this
  • 00:21:40
    too big of a percentage of my portfolio
  • 00:21:42
    one and two do I actually believe in
  • 00:21:44
    this company because sometimes you may
  • 00:21:46
    want to derisk aka sell a little bit of
  • 00:21:49
    that and then transfer those dollars
  • 00:21:51
    into other investments that make more
  • 00:21:53
    sense for you um but again this is all
  • 00:21:55
    about understanding your own risk
  • 00:21:57
    personal finance is personal there's no
  • 00:21:59
    one-sizefits-all answer but you do want
  • 00:22:01
    to understand what your risks are how
  • 00:22:04
    old you are and how close you are to
  • 00:22:05
    retirement and ultimately what your
  • 00:22:07
    portfolio what those percentages need to
  • 00:22:10
    be next question is what's the main
  • 00:22:12
    purpose behind the Trump tariffs what's
  • 00:22:14
    his actual goal so let's be clear
  • 00:22:17
    technically the stated goal is to boost
  • 00:22:21
    US manufacturing and protect jobs
  • 00:22:23
    raising tax revenue and growing the
  • 00:22:25
    domestic economy trump said that he also
  • 00:22:27
    wants to restore America's trade balance
  • 00:22:29
    with its foreign partners essentially
  • 00:22:32
    reducing the gap that exists between how
  • 00:22:35
    much the US is importing versus how much
  • 00:22:38
    we're exporting to those partner
  • 00:22:40
    countries in theory this is great but in
  • 00:22:43
    practice what we really understand is
  • 00:22:46
    that these tariffs are going to make
  • 00:22:47
    things more expensive here at home
  • 00:22:50
    because we pay the tariffs not those
  • 00:22:52
    foreign countries we already know what
  • 00:22:55
    prices look like in the grocery store
  • 00:22:56
    we're going to start seeing that across
  • 00:22:58
    the board and I do worry about the cost
  • 00:23:00
    of living rising very quickly and
  • 00:23:02
    hitting lower or medium incomes hardest
  • 00:23:05
    the bigger issue I think though is the
  • 00:23:07
    on andoff switch one day they're on one
  • 00:23:09
    day they're off this is absolutely going
  • 00:23:12
    to shortcircuit the supply chain
  • 00:23:14
    manufacturers are typically able to
  • 00:23:16
    roughly estimate how much of something
  • 00:23:18
    they've they have to make and they
  • 00:23:20
    employ that many people buy that many
  • 00:23:23
    machines buy that much raw material to
  • 00:23:26
    be able to create that much stuff but
  • 00:23:28
    the problem with the on and off again
  • 00:23:30
    switch I'm trying to do a light switch
  • 00:23:32
    here if you're watching on video there
  • 00:23:34
    isn't enough time given to these
  • 00:23:37
    countries and these industries to
  • 00:23:40
    recalibrate so at some point
  • 00:23:42
    manufacturers might make too much stuff
  • 00:23:44
    and that's a bummer because things are
  • 00:23:46
    probably going to go to waste but then
  • 00:23:48
    at other times they might not make
  • 00:23:50
    enough and that's going to lead to a
  • 00:23:52
    very terrifying picture do you remember
  • 00:23:55
    the empty shelves you saw when CO was
  • 00:23:59
    officially announced and everybody was
  • 00:24:00
    raiding their grocery stores like we
  • 00:24:02
    were just buying whatever you could get
  • 00:24:03
    your hands on we are going to see empty
  • 00:24:05
    shelves and higher prices because if
  • 00:24:07
    you're used to buying Greek yogurt and
  • 00:24:09
    so are other grocery shoppers and so is
  • 00:24:11
    the breakfast cafe down the street and
  • 00:24:13
    so is the smoothie joint on the block
  • 00:24:15
    but suddenly there are now half as many
  • 00:24:18
    containers of Greek yogurt you're all
  • 00:24:20
    now fighting over less supply you're
  • 00:24:23
    going to pay more and there's just going
  • 00:24:25
    to be less to go around ultimately it's
  • 00:24:28
    hard to officially say where this is
  • 00:24:29
    going to go because it does feel like
  • 00:24:31
    those headlines change daytoday but
  • 00:24:34
    whatever this is the flip-flopping is
  • 00:24:36
    going to hurt consumers next question
  • 00:24:39
    what are the chances all of my money
  • 00:24:41
    just poof disappears let's be clear very
  • 00:24:45
    low but admittedly not zero that said if
  • 00:24:50
    we get to that point you're not going to
  • 00:24:52
    need to worry about money money is not
  • 00:24:53
    going to have any like value or meaning
  • 00:24:56
    you are going to need to be worrying
  • 00:24:57
    about survival frankly the odds of all
  • 00:25:01
    of that going to zero are so low i as
  • 00:25:04
    someone who you know has a healthy
  • 00:25:07
    amount of disdain and mistrust for our
  • 00:25:10
    government I'm still continuing to pile
  • 00:25:13
    money into the stock market if there's
  • 00:25:15
    anyone who should be worried it's people
  • 00:25:16
    who have a lot invested and I certainly
  • 00:25:18
    do so I wouldn't let that keep you up at
  • 00:25:20
    night another great question i've never
  • 00:25:23
    invested is a bad time to start right
  • 00:25:25
    now no market downturns are actually a
  • 00:25:28
    great time to consider investing but the
  • 00:25:30
    simplest advice I can give you is the
  • 00:25:32
    best day to start investing was
  • 00:25:34
    yesterday and the second best day is
  • 00:25:37
    today time in the market will beat
  • 00:25:39
    timing the market every time so
  • 00:25:43
    essentially time in the market aka how
  • 00:25:45
    long you invest for will be timing aka
  • 00:25:47
    trying to find the perfect entry point
  • 00:25:49
    every time because you are just never
  • 00:25:52
    going to find the perfect entry point
  • 00:25:54
    hindsight's always going to be 2020 but
  • 00:25:56
    if you wait too long to get involved you
  • 00:25:58
    might miss out on all of that compound
  • 00:26:00
    interest over time and last but not
  • 00:26:02
    least do you think the FDI will be
  • 00:26:06
    dismantled okay so here's another really
  • 00:26:08
    great scary headline meant to be scary
  • 00:26:11
    to get clicks but there is a real story
  • 00:26:13
    here and this has more to do with saving
  • 00:26:16
    and your banking versus investing but
  • 00:26:19
    first off let's cover what is the FDIC
  • 00:26:21
    it's essentially insurance for your
  • 00:26:23
    money in the bank think about it like a
  • 00:26:26
    a co-signer when you were 22 and you had
  • 00:26:28
    $4 to your name your parents had to
  • 00:26:31
    co-sign on your rental agreement to
  • 00:26:34
    basically promise okay if our kid is
  • 00:26:37
    irresponsible and can't make rent we are
  • 00:26:39
    still going to make sure that the
  • 00:26:40
    landlord gets paid the landlord wanted
  • 00:26:43
    an insurance policy against you the FDI
  • 00:26:46
    does that but for banks so back during
  • 00:26:48
    the Great Depression when 9 million
  • 00:26:51
    Americans had their entire life savings
  • 00:26:53
    wiped out uh there was a lot of fear and
  • 00:26:57
    the FDI was created to maintain public
  • 00:27:00
    confidence in the US financial system
  • 00:27:03
    the US did not want people to stop using
  • 00:27:06
    banks and their main strategy to ensure
  • 00:27:08
    that your money in your bank account was
  • 00:27:10
    safe even if the bank itself went belly
  • 00:27:12
    up was to enact the
  • 00:27:15
    FDIC so you deposit up to $250,000 your
  • 00:27:19
    bank goes belly up the FDI makes sure
  • 00:27:22
    that you get your cash back but lately
  • 00:27:24
    there's been a lot of headlines about
  • 00:27:26
    Trump wanting to get rid of the FDI
  • 00:27:29
    entirely but I'm going to be real the
  • 00:27:31
    actual news is a lot more mild it's
  • 00:27:35
    unlikely that the government agency is
  • 00:27:38
    going to go away entirely but the FDIC's
  • 00:27:41
    regulatory role could get combined with
  • 00:27:44
    the office of the controller of the
  • 00:27:47
    currency the OC it's a division of the
  • 00:27:50
    Treasury and while it is likely that the
  • 00:27:54
    FDIC may see a roll back on what they
  • 00:27:56
    can regulate the actual insurance piece
  • 00:27:59
    is unlikely to go away and I say all of
  • 00:28:02
    this to preface i'm not going to start
  • 00:28:04
    stuffing cash under my mattress it's not
  • 00:28:06
    smart you could lose it if something
  • 00:28:08
    happens to your house and it's honestly
  • 00:28:10
    just going to be eaten away by inflation
  • 00:28:13
    you're going to be way better off again
  • 00:28:15
    putting that money in an FDIC insured
  • 00:28:17
    high yield savings account so you can
  • 00:28:18
    earn money on your nest egg on your
  • 00:28:21
    savings on your emergency fund and
  • 00:28:24
    please let this be the takeaway for this
  • 00:28:26
    episode don't let the headlines distract
  • 00:28:28
    you stay the course ultimately I want to
  • 00:28:32
    be clear it is not wrong to feel how
  • 00:28:36
    you're feeling recession is a very scary
  • 00:28:38
    word it sounds negative and honestly
  • 00:28:41
    when we in particular millennials or
  • 00:28:44
    folks around my age we've seen so many
  • 00:28:47
    major downturns in our lifetime already
  • 00:28:50
    this can feel bone chilling it can feel
  • 00:28:52
    like a chance for us to be laid off
  • 00:28:53
    again or set back just as soon as we're
  • 00:28:56
    trying to get our financial footing
  • 00:28:58
    underneath us but ultimately recessions
  • 00:29:00
    are a normal part of the economic cycle
  • 00:29:03
    there are things you can do to really
  • 00:29:04
    set yourself up for success and last but
  • 00:29:07
    not least it's important to remember
  • 00:29:09
    that they end ultimately recessions lead
  • 00:29:12
    to expansion periods where there will be
  • 00:29:15
    the good boom times again I don't want
  • 00:29:18
    everybody to freak out making rash
  • 00:29:20
    decisions pulling your money out of
  • 00:29:21
    investing is going to set you back a lot
  • 00:29:24
    more than frankly just riding the
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    and also invest you will be fine for the
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    future i hope you enjoyed this week's
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    episode i'm so grateful to be able to
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    talk to you and answer some of your
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    questions and don't forget to check out
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    askdy.com if you want to ask me more
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    questions as always I'm so grateful for
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    today thanks for tuning in to this
  • 00:30:47
    week's episode of Network and Chill part
  • 00:30:49
    of the Vox Media Podcast Network if you
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标签
  • recession
  • investing
  • financial planning
  • wealth building
  • economic downturn
  • savings
  • debt management
  • index funds
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