Personal Finance

4321 readers

3 users here now

Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. Join our community, read the PF Wiki, and get on top of your finances!

Note: This community is not region centric, so if you are posting anything specific to a certain region, kindly specify that in the title (something like [USA], [EU], [AUS] etc.)

founded 2 years ago

MODERATORS

[email protected]

Best approach to prepare for impending recession and economic doom of the USA (lemmy.dbzer0.com)

submitted 2 days ago by [email protected] to c/[email protected]

12 comments fedilink hide all child comments

I don’t have much in terms of investments (401K). I was wondering if there is anything I can do to minimize the impact of the incoming recession on my financial position.

1- What do I do with my 401K? Do I keep it in the same funds or should I look into reinvesting it in different funds? 2- Should I keep an eye out for “the dip” and buy in? What? Market funds? Bond funds? ETF? 3- In terms of stocking up, what’s the best approach? Bottled water obviously, but what else? 4- I am almost done paying off my credit cards. However, I bought a new car last year. Other than looking into refinancing to a lower APR, is there anything else I can do?

Until last year, I never thought much about how to survive the many “once in a lifetime“ shitshows we are seeing and usually rolled with the punches because I mainly didn’t have the financial means to do so.

Now that I am somewhat financially capable –a privilege not many of my fellow countrymen have unfortunately– I want to try and minimize the damage that is incoming.

Any advice/suggestions would be greatly appreciated. Thank you in advance.

you are viewing a single comment's thread
view the rest of the comments

[–] [email protected] 5 points 2 days ago* (last edited 2 days ago)

1- What do I do with my 401K?

The same thing you've been doing—contribute enough to max out your employer's match, more if you can afford to.

2- Should I keep an eye out for “the dip” and buy in?

Not unless you have a crystal ball or a time machine and you know what the future holds.

3- In terms of stocking up, what’s the best approach?

We don't know where you live or what your threat model is, nonetheless consider heading over to the prepper communities for ideas in this category.

4- I am almost done paying off my credit cards.

Congrats!

However, I bought a new car last year. Other than looking into refinancing to a lower APR, is there anything else I can do?

Find a mechanic whom you trust and stick to the recommended service intervals, especially for things like oil changes and tire rotations.

Any advice/suggestions would be greatly appreciated.

Seeing as you have a 401k and own a car, I assume you're old enough to remember the beginning of the pandemic. People were dying, everything was closing down, the world was ending. I know of people who panic sold thinking they were protecting their wealth. And then you won't believe what happened next. Counter to all rational thought, the market bounced back in a very big way. Those who stuck to the plan rode the recovery back up. Guess what happened to all those panic sellers?