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Don't try to time the market unless you dont have any cash savings. Have enough cash to last 6-12 months without a job and invest the rest. You'll do better tha
by coltonv 8y ago
Don't try to time the market unless you dont have any cash savings. Have enough cash to last 6-12 months without a job and invest the rest. You'll do better that way than trying to time the market.
- toomuchtodo 8y ago12 months. 6 months is not enough in an extended recession. Disclaimer: 2008 GFC experience (company folded, had to walk away from primary residence, etc, took 8+ months to find another job while burning through mortgage payments, medical/living expenses). Experience described in this comment and those below are so others can make more informed decisions than I did.
- cm2187 8y agoIf the assets are liquid enough, 6 months may be enough to sell them.
- toomuchtodo 8y agoMy money market fund withdrawals were halted temporarily when the NAV broke the buck. I have 1 month cash on hand in a safe, the rest of it is in an FDIC high yield savings account I have access to immediately with a debit card. Liquidity is a sliding scale when the economy is melting down. Fool me once.
- badloginagain 8y agoBiggest thing is to reduce spending. The closer to zero you can get on spending, the longer you can survive. I dont live in a place where I can afford a home, and Im actually seeing that as an advantage at this point- my investments are relatively liquid compared to a house, especially in a depressed/shocked market. It's not an asset until its sold- no mortgage, no problem.
- toomuchtodo 8y agoNot paying for my mother's prescriptions and medical care she needed to survive wasn't an option. I had to pick between the house and her care, and the house went. No regrets about the decision.
- AnimalMuppet 8y agoRight perspective. You did the right thing even when it was financially painful. Props to you.
- toomuchtodo 8y agoThanks, I really appreciate that.
- badloginagain 8y agoAh, I'm Canadian so having to sacrifice everything for loved ones health-care didn't occur to me. That'd be a horrible position to be put in.