How 7 self-made millionaires, who retired in their 30s, are preparing for the worst: economic mayhem caused by the coronavirus
Wall Street analysts are forecasting another global crash as Covid-19 causes a massive market slump – but these self-made millionaires aren’t panicking … yet
The coronavirus pandemic has the stock market teetering. As government shutdowns occur across the globe to prevent the coronavirus from spreading, countries are being forced to choose between the economy and health – and several Wall Street economists have predicted that the US will fall into a recession.
It can be scary news for everyone, especially those who have taken on an alternative lifestyle. Consider early retirees; the “Fire” (financial independence, retire early) movement has grown in popularity over the past 20 years among those seeking financial freedom. But many of these early retirees rely on investments, especially in the stock market, to fund their living.
We spoke to several people who retired before age 40 as self-made millionaires to see how they feel about the current economic turmoil. Will they still be able to fund their lifestyle? Or will they need to return to work? Turns out, most aren't very worried for themselves, and it's because they planned for their early retirement anticipating economic downturns. It all shows the power of a smart savings strategy.
Someday it will all be in the rear-view mirror … The timeline is anyone's guess
Here's how they're handling it – and what they're doing with their money right now. Note that this is not investing advice.
Chris Reining is gradually investing in stocks
Chris Reining retired at age 37 as a self-made millionaire. He describes the recent stock market drop was a “quick, scary” fall.
“What I've been doing is staying fully invested,” he said. “Any extra money generated by my portfolio, I'm using to buy stock. But I'm investing in stages, knowing the market could fall further.” He anticipates a “horrible economic fallout” in the near-term. “But there will be a point when investors stop selling. A point when people go back to work. A point when life returns to normal.
“Someday it will all be in the rear-view mirror. So my long-term bet is the economy recovers and the market moves higher. The timeline is anyone's guess. So, as for how to play the uncertainty? I'm old-fashioned. I don't try. I stay invested.”
Justin McCurry is counting on his seven years’ worth of living expenses that he’s saved in bonds and cash