Sunday, 16 July 2017
Is there such a thing as a 'recession-proof' portfolio?
Read? Is there such a thing as a 'recession-proof' portfolio?
Good reminder to us to build 'recession-resistant' wealth or net worth!
Uncle8888 fully understood this concept of 'recession-resistant' wealth building concept and not all into investment for higher return at all times.
Uncle8888's Three Taps Solution model should be one of those 'recession-resistant' wealth building concept or type.
Subscribe to:
Post Comments (Atom)
CW888, can I said that your Tap 1 is only flowing (income) after age 55 and age 65.
ReplyDeleteAge 55 - Interest from OA
Age 65 - CPF annuity
So, prior to age 55, there is no 'recession proof' portfolio lah.
True
DeleteFrom personal experience during AFC & Dot.com Bust/911/SARS, the best recession proof for my portfolio was having a "iron rice bowl" civil service job!! Haha!!!
ReplyDeleteIf a person has to worry about job security and insufficient passive income to replace employment income, then usually won't be psychologically prepared to buy when streets are awash in blood, even if got big warchest.
Think of it. Retirees are in better position to build recession-resistance portfolio since they have no concern over loss of income due to retrenchment.
ReplyDeleteThe real lever to make recession proof portfolio is asset allocation. If you allocate a smaller and yet comfortable percentage of your wealth to the volatile stock market, you are naturally making your portfolio recession resistant
ReplyDeleteTrue but some will feel that they missing out on opportunity cost. No free lunch in the market without affecting our emotions.
Delete