Is the Economy DOOMED? (And What to Do About It)
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- čas přidán 13. 05. 2024
- Is the Economy DOOMED? (And What to Do About It)
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“The economy is doomed!”
*”I am SO excited about this!”*
I was not expecting a doomsday prepper episode today
I’ve seen so many relatives blow their entire life savings on doomsday prepping only to go on and be poor in retirement. The relatives that had pensions, 401ks, stocks, bonds all fared far better in their senior years.
They give good advice here. Don’t overdo it. You’re more likely to experience a short term emergency (storms, etc) that last maybe at most about a week. Our family has “bugged out” twice due to bad weather and a forest fire. Which simply meant getting in our car, paying cash for gas and checking into a hotel the next two towns over and then being comfortable while others struggled in their homes. Your emergency stockpiles are worthless if they’re under water, or smoked out by by a forest fire, etc. Always have cash for a few days of food/gas, clean water, and an empty credit card limit to secure a room so you can have heat, AC and warm water and keep your family safe.
You mean all the canned food and guns won't pay for the hip surgery and care facility?
Some people go too far, but I think there’s definitely some peace of mind in having some amount of physical metals, pew-pews, extra food, etc
Collab with ramit sethi would be dope
These guys are so much more useful than him it’s not even comparable.
@@newsjohnson How? Ramit focuses more on money psychology, just different focuses
England and the Netherlands used to own the world, lost it, and they’re still fine. The worse case being pushed has already happened there. It’s not as bad as you think.
They’re only fine because we allowed them to be fine. If China takes over they won’t be as benevolent as the US has been.
USD is king and only strengthens in global uncertainty like we’ve been seeing
Be fearful when others are greedy, and be greedy when others are fearful.
Dangerous potluck mantra
The economy is never as great or as bad as people want to make it seem.
So excited to binge the audiobook!!
Great episode! I need to catch the next one live!
you guys keep me disiplined and fuel my optimism. I just preordered the book as a way of saying "thank you". Greetings from Berlin!
You don’t have to identify with the system as a whole. Wait till you learn the entire universe is in entropy, let alone the global economy 😅… still gotta live your life as the world becomes more complicated and disorderly and take control of what’s within your power. You balance external complexity by simplifying your personal life.
I love your content. Thank you for everything you do.
I am SO excited for the new book to drop
Keep up the great job
Just pre-ordered the book!❤
There's alway something to scare people in the market...like a Roaring Kitty. Great video guys...can't wait for the new book.
A Money Guy/ Warren/ Munger colab would have been uh-mazing…
(Brian’s Troll here) I still wish for an episode on the fees charged by financial advisors. Abound wealth changes 1.25% of assets under management. That’s $12,500 a year for a million dollar portfolio. If that same $12,500 annual expense was invested into an S&P indexed mutual fund - in 10 years, compounded at a conservative 6% it would be worth almost $200,000.
Brian talks about about opportunity loss… but please help us understand how the service outweighs the expense
thats why they always talk about an 8% return on your money when the market returns ~10% on avg.
I don’t use them, but I am happy to pay about that range to allow someone else to make prudent decisions without my day to day involvement. I am happy that others find a better way to wealth management for them, as well. I think we can all live in peace on this topic.
Yep. If you are a true financial mutant, you would not give away $12500 per year. Instead. that money could just be invested and working for you. It's not that hard to maintain a very low cost, risk-appropriate portfolio on your own. Read up on Jack Bogle and the Bogleheads. Lots of do it yourselfers on there.
Book has been pre-ordered!
I am confused by two different ideas. You always project growth in your examples at 8% - 9% or so but then you always say that as you get older you should get more conservative. If I move all of my funds from equities into bonds or cd's then my possible income will be cut in half.
There is a middle ground between 100% stocks and 100% bonds. They have elaborated a bit on this but the gist of it was:
a) you want a very big "emergency fund" when approaching retirement/in retirement. Something like 1 - 1.5 years of living expanses. You then want some Bonds to have the ability to cover even more time if your equity investments need time to recover. With such a mix you have a) not to worry about liquidity mostly b) some cash flow without selling dropped assets and c) still a major portion in higher return allocations. However as they say this gets really personal (social security? pensions? maybe real estate cash flow) but thats the general gist of it. That way your return might not half, but be more like 6%.
Need some west coast book tour stops!
Million dollar net worth, no home owner here. Lots of ways to build wealth.
What age did you hit 1m
@@SkylerF around 58.
The answer is yes! But if you are debt free and have cash, it's a buying opportunity. Stocks and real estate go on sale. How big of a discount is the question ⁉️
Preping for doomsday by buying gold or bitcoin is like preparing for a hurricane by stocking up your fridge...
It wont be worth anything when it all falls apart.
Words of wisdom! You can’t eat, drink or shelter in the gold. It is useless in a doomsday scenario
Sure but it’ll help in a moderate downturn which is much more likely
ABB=Always Be Buying
I vote for JL Collins the Godfather of FI. He’s getting up there so do it while you can!
YES, please!!! This collab would be a DREAM!!
Everyday I consume knowledge from the Money Guy show and JL Collins interviews and the simple path to wealth. I can’t get enough!! 😅
So much for me being pessimistic yesterday
I am just surprised Bo is excited for every episode lol
I do remember one he did not say that, and it was remarkable, so I left a remark!!
My parents were preppers when I was growing up, so I learned to grow, harvest, can, dry, and build. But if you want to know the best way to survive a collapse, make friends with your neighbors.
Lol. The economy is always doomed. Nothing lasts forever. In the meantime, don't cash out your 401k and keep your money in the market because if it crashes, nothing you can do will matter.
Well there is , cash is king, people don’t like to hear but have cash!
The economy is doomed. There is no chance. That's why I'm investing in cardboard boxes now. When all of you need a place to live and need a nice box, I'll have the market cornered. I only accept sea shells and raccoon pelts as payment.
as long as you own some cash/gold just stay invested long term. do not pull out
Agreed. Never pull out
@@bobknob8440thats my life motto. All of my 9 kids can vouch to that
At the end of the day, we exist on Earth to survive. The truth is, you might need to get a weekend job, cut your living expenses, or move to a more affordable area. You may have to live a temporary lifestyle that you currently think is below you. Throwing your hands up and giving up is just darwinism doing it's thing. My wife and I make over $170k income with $50k+ to put down and we only got approved for $500k. Even staying well below that, I'm not paying $3k+ a month to live in a house no matter what my income is. I'd rather get a 600 sqft house I can comfortably afford. My kids can sleep in a bunk bed for a couple years, they'll survive. Most single family homes are terrible investments anyway so get something you can comfortably afford instead of impressing your friends and family. View where you live as an expense, not an investment. Banks loan money based on what you can currently afford. They aren't pricing in $3k a month daycare in 5 years so be careful what you sign up for when you are young.
Love it
Could you expand on the "most single family homes are a poor investment"
What do you mean? What is a worth while investment ---- but not as a means to build equity, rather to maintain value while living comfortably as a new family.
Context : brother in law at 22 is making $30/ hr 36hrs a week
He is soon to face a son and has a wife that does little to nothing, but he loves her, and she's nice enough - just wish she would make money or.... Ugh anyway
I told him to save and rent for a year or two and to build $25k to put down on a $50k house or go all out and save $50k
Any advice?
Or are you saying "single family homes are a bad investment BECAUSE they are an expense similar to a used vehicle?
@@modernNeanderthal800 A little of both I guess. In high interest rate environments, the total amount you will pay over the life of the mortgage is often double or more of the purchase price, especially when you factor in maintenance/ renovation costs over that time period. Most people buy their house for $300K and sell it for $600K thinking they made a $300k profit which is not the case. Buying a house for most people stabilizes their biggest expense which is housing. If you buy too much house, you stay stuck putting 40%+ of your income into a mortgage payment. The only "return" you are going to get is when you sell it. When you factor in all the money that went in minus the sale price divided by the total years owned, it usually comes out to be a poor performing asset. That said, if you buy a house and the market goes crazy and you sell in 5-10 years, it can be a good investment because the appreciation outpaced the interest over those few years while you also built equity. When you draw it out over 30 years, a 7% interest rate will obliterate that appreciation. I recommend just staying well below what you get approved for and either pay it off early or refinance it down the road at a lower rate to rent it when you upgrade houses.
@@tedjerdee1028 thanks for the clarity. Yeah that all tracks with previous wisdom.
We bought our house on 2019. Sold October of last year. Bought a repossessed house for the price of our old remaining loan balance, and with the remaining cash we paid off half the loan.
We intend to pay off the mortgage in the next two years.
This will either be our retirement home (one floor, large, large back yard)
Or our lottery ticket
That Transformers sound effect made my day!! Brought back memories!! 8:27
I love 2% mortgage and have zero reason to pay that off while I still have student loans. Yep
I hate to say this, but it is always difficult to get into a house. Sure the comments say that it was easy in 1970 through 1990, but even then, it was very difficult. They only say that it was easier because they were not there. It was tuff and using averages does not work on the scale of the US. I could not buy a house in the 80s, or early 90s. I had to save for years before I got a house in 1998 at a interest rate of 7.2%, and I felt lucky to get that rate.
As someone who lived in those times and was incredibly average, to say it wasn’t much easier is just blatantly false, with all due respect. I look at what my adult nieces/nephews are dealing with and even with their decent jobs they aren’t even close.
@@mildchaos6037 No one was getting that 35K-50K affordable 1980s house on 3.35/hr. It was not happening at $134 gross per week. Then you needed gas which was $1.19 per gallon in order to go to work(15-22 mpg). Maybe your life was easy, but it was fricken difficult because none of us was getting a home with a mortgage of 13.74%/yr. I lived it and in central NY state, it was not easy. The Federal tax breaks from Reagan helped a little and yes I was slightly better in 1984, but it was not great. Yea we got by, but to suggest that it was easy as interest rates were heading to 18%(30 yr mortgage) is overly simplistic. The M2 money supply was also much less than now and remember when your only credit card was Sears or Montgomery Wards. I do. Everything else was done in Cash or check.
You’re correct. I was a RE Broker in the early 80’s when prime rate hit 18.8%. It was hella hard to sell a home even at a huge discount from true market value.
@@WallaceDunn Yea, who could afford to pay off the entire home value every 5 years, just to live there? Yea, it was super easy right? You have to heat it($1.10/gal fuel oil) and pay for electricity. The only way to buy a home was with seller backed financing avoiding the bank where you may be able to work them down to a CD rate of ~12%, and that is if they did not need the money to buy their next house. And add the 10% inflation each year for 3 years, and one year of 13%. Yea, the 80 were super easy, barely an inconvenience. And that was after the 70s where the president says drive 55 to save gas and put on a sweater so that you can lower the heat requirement of your house.
I used to own a home and it came with an 8.5% interest rate. Circa 1986.
3 most important things about buying a home. Location, location, and location. Seriously.
Meet and greet in Omaha would be a good way to make up for not coming before 😉
LOL -- #29:02 "Great... "🙄👀
❤❤❤
Their debt wasn’t necessarily using up 40% of their income - they may have thrown tons of extra on it in order to pay it off early so it ate up 40%
I’m trying to buy a home in 2-5yrs before everything goes to rental only
Your prepper list not including cash is a poorly thought out list. There are some good books of first hand accounts of what happened in Argentina and other countries that experienced economic collapse. You should give them a whirl.
"He who smelt it, delt it" - Aristotle probably
You guys give me hope for the economy. The other zoomers all complain that they cant buy a house, but i know if im smart with ny money ill be able to save for one. While they're crying and wasting all their money, im saving (:
Step 1. Collect Underpants.
Step 2. ...
Step 3. Profit
If the economy crashes... it's an opportunity to buy like crazy. Collect those "underpants".
Money you can invest in a recession is worth more than double what you can put in during a peak market.
Population collapse around the world probably will doom all economies. We've had roughly 300 years of ever expanding growth and we don't know how to deal with shrinking economies.
Theres enough people that will do anything possible to stop doomsday from coming. I wouldn't worry about it.
Why are the tax payers in Colorado paying for your kid’s education? It’s a front door loan forgiveness. There are just so many things wrong with that.
Brian.
You were smelling the absolute GAS advice you were pumping
If you are all of a sudden smelling new strange things, get a brain scan
Solution : Geo arbitrage.
To the IRA? - I don’t think that the Irish Republican Army cares about your Roth.😂
The Atlanta area you are using for the book tour is not that safe
Dumb question. What is on Brian’s coffee cup? It looks a little like a whale tail.
Mandalorian helmet from Disney
Beecawssssss!
The apocalypse is the great equalizer. It can't come soon enough.
Not much of an investment strategy
@@chemquests Sure isn't. But if it's an apocalypse, all those investments won't be worth anything, meanwhile the bottom third of society who have struggled their whole lives will finally have the advantage.
@@Laz_RS if what’s an apocalypse? If you’re talking about the collapse of civilization, I’ll put it at extremely unlikely, considering it’s only happened a few times in the entire globe over the past millennium.
@@Laz_RS hate to break it to you but the "bottom third of society" has never had an advantage.
@@kevinkanter2537 I know. That's my point. What the F are you talking about? learn to read.
You dont like gold and bitcoin? Weird those are hard assets bothe have performed well
Weird bitcoin is not a hard asset at all. Gold is generally flat over long periods.
@@chemquests gold is generally flat long term? Gold has outperformed the S&P500 since 2000. Cope
@@lanetrain flat since 2010 & declined 1980-2000, so you’re referring to the couple years recovering from the Great Recession.
@@chemquests it was like $35 in 1970. Saying it's flat in the long-term is insane. It's also not flat since 2010. In 2010 it was $1150. It's double that now.
@@lanetrain Gold is a hedge against inflation; once you correct for inflation, it’s basically going up & down with concern about inflation. $2,722 in 1980 & 2,286 in April this year.
Hosts are so simple minded. Most people aren’t concerned about a collapse of society- financial advice isn’t going to help with that. But what about the economy hitting stagflation like in the 70’s? That has to be considered given the massive US debt and continued deficit spending in DC despite low unemployment. The next recession is going to be a disaster.
If you buy through downturns, your returns tend to smooth out over time and have averaged to 10-12% in the S&P 500 over the long term. Always Be Buying
If you are concerned about stagflation then the answer is you need to be saving money and paying off debt. Get rid of subscriptions and unnecessary spending and focus on saving.
He is always so excited. Come on bro get some original stuff.
I'm both a prepper and a financial mutant. I keep extra food, water, gas, and cash on hand and have a plan to handle the most likely disasters in my area.
Its about balance, and not getting scared to the point where you go overboard and become a full doomsday prepper.