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Related, I am wondering if any of you have any tips on securing financial independence / passive income that will hopefully be Tech recession proof. I.e, best

Related, I am wondering if any of you have any tips on securing financial independence / passive income that will hopefully be Tech recession proof. I.e, best way to see yourself through a Tech downturn without taking a severe hit to your wealth. I say this because I've had recent experience with people losing huge amounts of their wealth, and almost going bankrupt during the Oil price crash. For instance I know Oil workers who had most of their wealth in oil company shares, a house in an oil related city and lose their oil industry job. I'd imagine their are lots in tech that are the same, large amount of Tech shares, a house in the Bay area and a job in Tech. Anyone got any tips on diversifying for a downturn? What shares (if any???) are likely to do well if Tech has a bad patch.

Chrisjay 10y ago
I think farmland still has a ways up to go - that could mean a spot in the country, a share of a working farm, or a financial vehicle like AGRO. I'm not financially independent though, so take my advice with a grain of salt.
tim333 10y ago
Things like utility stocks tend to hold up. In the 99 crash Berkshire Hathaway was countercyclical and hit a low on the day tech stocks peaked. Also oil stocks were roughly negatively correlated with tech in 99 and may be today. Reasonably priced property not in the bay area?
SmellTheGlove 10y ago
Well, it doesn't help me at all in the tech job market, but my primary residence is 0.75 miles from the beach in the Northeast (Maine). At some point I'm pretty sure we'll move one more time for a career opportunity, at which point this becomes the 2nd home and an investment. We weren't really part of the housing bubble or the collapse here - things just kind of kept moving along at reasonable rates of appreciation. As a result, there aren't any bargains here, but I know a few people with similarly located homes renting them by the week in the summer to tourists and keeping them completely vacant from October-April. I'd like to get another property up here. Now, if you're talking about market investments, do yourself a favor and diversify. Just hold indexes and keep your expenses low if you don't quite know what you're doing. That said, disclaimer, I'm not financially independent. I very much need my job, as I have a mortgage and student debt from law school, plus a child and probably having 1 more in the next couple of years. I'm nearly certain I'll never be financially independent, since I'm really trying to set that up for my children instead. I have no idea what college will cost in 15-20 years, but I see the direction it's headed and my financial plans are more around making sure they come out of school debt free. My folks did that for me, but then I was dumb enough to go to law school in 2005. I really can't complain, I have a pretty solid career doing fintech and data for a large company, but it's one major expense I could have avoided and been okay - although it does check the "advanced degree" box. I have some side projects and more coming, but if I make a few dollars there, it goes directly to my kids' savings. I do have US and EU passports, so there's potentially that option for retirement with affordable healthcare and housing, but that's projecting years down the road.
gwbas1c 10y ago
Investment-wise, everything has ups and downs. The only way to be recession proof is to diversify and periodically reinvest. For example, you could buy a sack of gold coins, but then you'd be subject to the ups and downs of gold's value throughout your lifetime. Passive-income-wise, market forces will eat away at passive income. Easy ways to make money are copyable; or the customers will catch on and figure out how to lower their expenses and cut you out. (Think about how everyone stopped paying for CDs.) Those who do make passive income keep it a secret because they don't want competition!

Chrisjay 10y ago

I think farmland still has a ways up to go - that could mean a spot in the country, a share of a working farm, or a financial vehicle like AGRO. I'm not financially independent though, so take my advice with a grain of salt.

tim333 10y ago

Things like utility stocks tend to hold up. In the 99 crash Berkshire Hathaway was countercyclical and hit a low on the day tech stocks peaked. Also oil stocks were roughly negatively correlated with tech in 99 and may be today. Reasonably priced property not in the bay area?

SmellTheGlove 10y ago

Well, it doesn't help me at all in the tech job market, but my primary residence is 0.75 miles from the beach in the Northeast (Maine). At some point I'm pretty sure we'll move one more time for a career opportunity, at which point this becomes the 2nd home and an investment. We weren't really part of the housing bubble or the collapse here - things just kind of kept moving along at reasonable rates of appreciation. As a result, there aren't any bargains here, but I know a few people with similarly located homes renting them by the week in the summer to tourists and keeping them completely vacant from October-April. I'd like to get another property up here. Now, if you're talking about market investments, do yourself a favor and diversify. Just hold indexes and keep your expenses low if you don't quite know what you're doing. That said, disclaimer, I'm not financially independent. I very much need my job, as I have a mortgage and student debt from law school, plus a child and probably having 1 more in the next couple of years. I'm nearly certain I'll never be financially independent, since I'm really trying to set that up for my children instead. I have no idea what college will cost in 15-20 years, but I see the direction it's headed and my financial plans are more around making sure they come out of school debt free. My folks did that for me, but then I was dumb enough to go to law school in 2005. I really can't complain, I have a pretty solid career doing fintech and data for a large company, but it's one major expense I could have avoided and been okay - although it does check the "advanced degree" box. I have some side projects and more coming, but if I make a few dollars there, it goes directly to my kids' savings. I do have US and EU passports, so there's potentially that option for retirement with affordable healthcare and housing, but that's projecting years down the road.

gwbas1c 10y ago

Investment-wise, everything has ups and downs. The only way to be recession proof is to diversify and periodically reinvest. For example, you could buy a sack of gold coins, but then you'd be subject to the ups and downs of gold's value throughout your lifetime. Passive-income-wise, market forces will eat away at passive income. Easy ways to make money are copyable; or the customers will catch on and figure out how to lower their expenses and cut you out. (Think about how everyone stopped paying for CDs.) Those who do make passive income keep it a secret because they don't want competition!