So I had a chat with my financial advisor on Friday. Turns out I’m not the only one who suspects our gold-plated financial house of cards will not stand the test of time. He said quite a few of his clients had come in and asked to be positioned so that their assets will withstand a major recession, which they expect to occur…oh, some time in the next four years.
Interestingly, too, at Scottsdale Business Association, on Thursday our speaker was our member who’s a financial advisor. And interestingly, he spoke on instruments that will provide a (relatively) safe haven for your investments…and some that look like they will but are real or potential rip-offs. He warned against putting a substantial amount of assets in instruments that lock up your money so you can’t get it out without a penalty and that pay no more than or even less, over the long run, than equally conservative tools that keep you liquid.
So anyway, my guy is less pessimistic than I am, but still cautious. We’re invested about 40/60 in bond instruments that pay less but lose less in a crash and in stocks. Meanwhile, the investments we do have are going batshit. My investments have returned over 47% since I went with Stellar in 2000, despite the Bush catastrophe. If we hadn’t enjoyed the worst recession since the Great Depression, the return would presumably have been even higher, and today I would be able to pay for the car without worrying how I’m going to buy groceries.
Last month the big IRA returned 13 grand.
Still, I wonder. That fund is capable of losing twice as much in a month, and at times it has. The reason I survived the Bush Recession without too much long-term harm is that I bucked said advisor’s wishes and paid off my house.
He felt I should have kept the money in securities. I realized that once the alimony ran out, my salary would not cover the mortgage payment (at that time I had no other debt) and also my routine living expenses. As it turned out, if I hadn’t paid off the mortgage at that time, I certainly would have lost the house in the wake of the Great Recession.
So…there’s a point at which you have to think for yourself.
However, not knowing what to think as the country spins toward a colossal train wreck, I suppose the best thing is to stay the course.
It probably doesn’t matter. At this point, anything you do with your money, short of taking it all out of the market and burying it in tin cans under the roses, comes under the heading of moving deck chairs.
Image: Depositphotos, © rrraum