How has the recent market downturn changed our plans? Jason + Eric candidly discuss their pre- and post-FI moods in this volatile time. Learn what they’re doing and thinking about right now as Jason nears the two-year post-FI mark and Eric contemplates pushing his 2024 FI date back.
Note: This content does not constitute investment advice and is being presented for informational and educational purposes only.
Essential Background: Let’s start out with some definitions. Terms like correction, market crash, and bear market are thrown around casually at times and knowing their meaning is important. This Fortune article is a brief and effective summary.
Buying Stock in a Down Market is a part of show guest, Fritz Gilbert’s, post-FIRE strategy, which he discussed in a recent conversation with us. In this episode highlight, we discuss how he felt during the 2020 market decline and learn about his approach to continue buying in order to take advantage of low equity prices.
The Psychology of Money (Morgan Housel), is the book Eric discussed in this episode. Subtitled “Timeless lessons on wealth, greed, and happiness”, it recounts 19 short stories “exploring the strange ways people think about money and teaches you how to make better sense of one of life’s most important topics”.
Fixed Income has an essential role to play in any portfolio, particularly as you approach your retirement date. Did you miss our two-part series on Eric’s recent efforts to change their asset allocation from 100% stock? As he referenced in the current episode, that was an important part of increasing his confidence in this down market. Be sure to check out part one and part 2 of our conversation, as well as the behind the scenes conversation Eric and his wife Laura shared on this essential topic.
Tax Loss Harvesting is a concept we’ve discussed on the show before, but haven’t dug into deeply. This Investopedia article is a good summary. In brief, TLH is an approach by which investors can sell an asset at a loss, reducing the total amount of capital gains taxes due from the sale of profitable investments. You can then use the sale proceeds to purchase a similar asset or security, maintaining your asset allocation.
You can find information on the tools we mention in each episode along with additional information in the Resources section of this site.