How to Money Ask HTM - Sahm Rule Recession Indicator, New App Gives Kids IRAs, & Paying for Big One-Time Expenses #931
Jan 13, 2025
Dive into listener questions about financial strategies! Discover how the Sahm Rule can guide your investing during recession fears. Explore the new Halfmore app helping kids save in Roth IRAs while teaching them financial responsibility. Debate the value of inherited accounts for major expenses versus smart financial planning. Plus, enjoy some lighthearted discussions about coffee preferences and the importance of seeking second opinions from financial advisors. It’s a lively blend of practical advice and engaging topics!
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Sahm Rule and Investing
- Consider the Sahm Rule Recession Indicator when making investment decisions.
- However, remember that it's not foolproof and shouldn't drastically alter your long-term strategy.
Understanding the Sahm Rule
- The Sahm Rule predicts recessions based on rapid unemployment increases.
- It triggered recently, but its inventor, Claudia Sahm, doesn't believe a recession is guaranteed.
Debt vs. Investing During Recession
- Prioritize paying off high-interest debt, like credit card debt, regardless of market conditions.
- Continue investing, especially if young, even during a potential downturn to buy low.