The economy is getting worse, companies are downsizing, with all the Tariffs and government strong arms with the world, small companies are dying. My wife was worrying about getting laid off and became very depressed. But I did the calculations with our finance and investment, we don’t really need to be worried. Our investments are doing very well, regardless of the market up or down. Actually, the more it goes down the more money we make.
Living in Silicon Valley, the cost of living is high, the housing, the health insurance, the car insurance, the property taxes, the gas, the food, the taxes of everything, the inflation is higher than the government shows in real life. With our kids going to college, our cash going out of the bank yearly is $180k.
All we need is the money taken out of our investments is less than $206k so we can pay less tax than if we take out more from our investments. Our investments average 20%-30% so we can safely live comfortably. The goal is only invest 20% of total cash in hand to make 20% year. Low risk high yields.
After all the math, the planning, shown to my wife and she felt much better, happier even if both of our jobs are gone.
We worked hard, we saved, we invested and we found the niche to make money in the market regardless of the politics, the economy.
