Hello My Peoples,
I felt I would reintroduce with that Isley Brothers song “Hello it’s Me”….
Hello, it's me, I've thought about us for a long, long time
Maybe I think too much but something's wrong
I think the lyrics are perfect for this time. After the election, I took some time to reflect and regroup but I have been thinking of you and how to give guidance and hope. I still am a history buff and recommend that everyone read “The Defender” by Ethan Michaeli. This book is about the great black Chicago newspaper but also shows us how our people survived and navigate difficult presidencies and trying times. I am sorry that some of you have found out that your financial advisors don’t know any more than you do. Their advice of readjusting your portfolio and staying calm is just not cutting it as you see your portfolio crashing. Are you having flashbacks to 1990, 2008 or 2020? I know you want someone to make the pain go away but the hard truth is to never give the final guidance to someone else, whether you make or lose money is not going to effect your advisor’s paycheck too harshly. Remember, they have many more clients. You have to decide what your loss point is and at what point do you cut your losses and park your money on the side. I am no guru, but the tariff war doesn’t make since. Tariffs are complicated and there is a reason why we have not made drastic changes, but I am not going to debate this on here. So here are some things I have learned along the way:
1. If you have 30 to 40 years til retirement, you just have to stay in the market and ride it out. Your retirement account are investing on dollar cost average so the cheaper the mutual fund price the more mutual fund stock you buy with the potential that it will all be worth more upon retirement.
2. If you are within 5-10 years til retirement, you need to make a decision whether to stay in or sit on the side lines. Do you have enough money to be okay? Remember, pigs get fat, but hogs get slaughtered. Rethink what retirement looks like and can slow quit. Can you reduce time spent in the office, use vacation and those saved up sick days for mental health and leisure? Retirement doesn’t mean you have to leave your job, retirement mentally. You can access your 401k or 403b with penalty after 59 1/2, just don’t take out more than 4% annually.
3. Education: we are back to the pre affirmative action days. Get your kids as much education as possible and remember they may have to follow the opportunity even if it means leaving those red states or looking internationally. Our people won’t make it just settling for Starbucks jobs.
4. I still drink seltzer but not Perrier, I bought a Soda Stream. I am saving money and reducing recycling.
5. I hope Warren Buffet stays around for at least 4 more years. Berkshire B shares have been good to me even during this downturn.
6. Don’t sacrifice your health during this period. Eat healthy and exercise. My best investment last year was an E-bike. Trust me, get an Actbest on Amazon. It is reasonably priced and well built.
7. If you have a Kitchen Aid mixer, get the ice cream attachment. I have made the best Oatmilk nondairy ice cream. I normally put in fresh blueberries or strawberries. You will never buy store bought ice cream again.
8. We still have some tough months ahead financially and as a people. The coming months will be difficult but we are built for endurance. This is a time to be frugal and reduce costs and lean into your spirituality.
Peace out,
Frugal Frank OTBS