What to do next?

Seek advice from someone you trust, or a financial planner. I wouldn’t seek advice from anonymous message board posters.

What I do is purchase VIX calls as downside insurance on my portfolio, and I’ve placed some protective puts on some, not all, individual equities. Obviously those are going to pay as soon as tomorrow. I’ll then have more cash to buy selectively at lower levels. These options time the market for me, and I’m not generally as concerned with the immediate future as the long term future as some sort of downturn has been inevitable since at least 2020.

What I do isn’t for everyone. I’m just giving an example. Again, speak to people you trust that have a track record of competence. And also try to conceptualize that whatever you're hearing on media and social media is probably exaggerated. Frankly, and I’m not trying to be a dick, the preparations should have been made years ago when it was obvious that we’d have a significant economic challenge. It’s probably too late for some things, but maybe not for some other things. If it’s too late, don’t worry about it. One thing is almost guaranteed, economic upturns and downturns are always temporary, never permanent. If this one turns out to be permanent, what difference does any of this make? Don’t worry, be happy.

 

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talk to a financial planner and be crystal clear on what level of volatility (likely low, based on what you wrote) you are comfortable with.
If s/he still continue to try to sell you on stocks or worse, annuities... walk away.
If you do seek a financial planner, ask what their fees are. It's based on AUM (assets under management) and the bigger the institution, the higher the fees.
We went with someone based in a smaller college town.. invested some with them but not all. Gradually, we moved more money to be invested by them as we grew to be comfortable with their service/support, which is also important. You need to find someone who can provide the amount of communication you need, esp if you have lots of questions.

 

Most people are stuck because a lot of retirement accounts are taxable investments (ie not 401k) .. So, for someone to move from stocks to bonds or something less volatile would require selling and getting whacked with capital gains taxes.
Also, nobody wants to sell low.. They're better off waiting until the market recovers...in about 4 years.

 

Is it four years yet? Lol.

 

Lots of smart people on this board but I wouldn’t take financial advice from here.

Like medical advice, financial advice is best done with a thorough analysis by an expert.

Best to go to a full service firm for help verse someone what only offers in house products (like their branded insurance).
At this point the Wires, Discount Brokers and RIAs are more the same then they are different. While they can be “old school brokers “ most firms have plenty of advisors focused on financial planning and use invest models built by a research team verse them. They will also have access to other investment products.

These days if you’re in an advisory account (paying a AUM fee) then your advisor is most likely in a fiduciary capacity.
Also people with CFA, CFP, CIMA, AIF, PFS, or CAIA have all sworn to a fiduciary standard by the organizations that sponsors those designations.
Look up them up on FINRA/SEC brokercheck.

They are suppose to disclose any negative work or legal history but better to take 2 minutes to look yourself.

 

You definitely need a financial planner. Your instincts are not based in factual reality. It’s best to leave your money up to someone less emotional