Despite the obvious importance of financial matters in the success of an overseas early retirement experiment like ours, you may have noticed I generally avoid personal finance posts like the plague. First and foremost, while I did work in the financial services industry for 31 years, I’m not a licensed professional therefore I’d be remiss if I doled out advice about your money. But of course, that never stopped anyone in a social media generation where everyone’s an expert and every month or two brings a new Trump Slump where it seems like the sky is falling. Along with a strong coffee, my morning ritual involves perusing the more reliable financial websites to see what happened in the markets while I slept. And like me, you may have woken up to a stressful email like the one below announcing a reduction of your interest rate thanks to a now fully politicized Federal Reserve Bank compliments of President Shitbrain.
Starting 08/06/2019, your Online Savings Account will earn 1.90% Annual Percentage Yield (APY) on all balance tiers.Your APY is more than 20x the national average — so you can rest assured that your money is working hard in your savings.
With financial journalism now mostly reduced to large websites like Marketwatch and Yahoo Finance hiring millenials that scour other people’s blogs for reposted content, it’s tough to weed your way through the sensationalistic nonsense like this guy who claims the next three months are “the edge of a cliff” or this genius who claims “The Fed should have an emergency meeting and slash interest rates 50 basis points“. Without needing Macroeconomics courses, all you need to know is that the last thing a Central Bank should ever do is cut interest rates while unemployment is at a 40 year low. Despite coming from Barron’s, the first guy supposedly called the 2008 Financial Crisis which means we’re supposed to think he’s got a crystal ball. (He doesn’t, and past performance is NEVER an indicator of future results. Just like the disclaimers on TV and radio say.) As for the second guy, he supports the “policies” of the Stable Genius which automatically nullifies anything he says as pure ignorance.
Throughout my 31 years of cubicle life, I’ve always stayed aware, but ignored the fluff and continuously invested through about five “major” financial crisis’ from The Asian Financial Crisis in 1997 to the 2008 “Great Recession”. As I pointed out in Eight Percent Of Zero, my most comprehensive post on money matters, retiring early without being wealthy comes down to understanding asset allocation, developing a plan that’s right for you, and sticking with it. Period. Having said that, Orangeman causes almost daily shocks to the world’s financial system so including something about money matters in an expat blog about early retirement seems necessary now.Continue reading