Ramblings

What inflation? Or why you should own your home.

That’s it really.

While I still might be sulking over losing $4 million in six months, I have the luxury of knowing no one is evicting me from my home because I own it outright and expenses are fairly stable (property tax, insurance, utilities, and maintenance) and considerably cheaper than renting. If the unthinkable happens and I need to get a job to support myself again, I can work at Wendy’s and get by.

Luckily, I set aside enough cash to cover two years of expenses. Hopefully, that’s enough time for inflation to abate (which requires China to lift its lockdowns and Putin to come to reason or…) and the US Federal Reserve to pivot from hawkish to dovish because I dislike shorting stocks.

I know not everyone can be as equally cavalier about inflation, so good luck out there. I hope people will learn from it though (have an emergency fund and don’t buy more house than you can afford!). This exact risk—sequence of returns risk—is what I feared most about my early retirement so I planned for it by setting aside enough to ride out a stock market downturn. In hindsight, this crash was obvious but I allowed the euphoria of a parabolic stock market to blind me. This burgeoning recession sucks but it too shall pass.

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