Can Your FIRE Portfolio Survive a Stock Market Crash?

BiggerPockets Money Podcast

BiggerPockets

Investing, Education, Business

4.6 • 2.9K Ratings

🗓️ 28 March 2025

⏱️ 44 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

The stock market is shifting, and your portfolio needs to change NOW if you want to reach or stay FIRE (financial independence, retire early). Many early retirees are sitting anxiously, watching their net worth fall by 10% (or more), making each withdrawal from their portfolio increasingly risky. If you’re close to financial independence or are retired early already, you CANNOT risk losing the gains you’ve worked so hard for. This is what we’re doing NOW to keep our FIRE portfolios crash-resistant. Last month, Scott talked about his big decision to sell off a chunk of his index fund portfolio in fears of overvalued stock prices. What followed? A significant stock sell-off, with some major indexes falling 10% already. Scott urges those close to FIRE to “lock in” their gains and avoid unnecessary risks to push their FIRE numbers higher. So, what did Scott move his money into, and should you do the same? Should you switch to bonds for a safer but lower-return correction hedge? What happens if this stock downturn lasts years? Should someone in their 20s or 30s, just starting on the FIRE path, stop investing or double down? We’re answering all of your burning FIRE questions today! In This Episode We Cover Why Amy uses a financial advisor to help manage her money in retirement Amy’s journey to financial independence, losing her husband, and retiring early Assets under management (AUM) versus fee-only advisors (and which one to hire!) How to reach your FIRE number sooner through “experimental deprivation” Why you need to have regular money check-ins with your significant other And So Much More! Links from the Show Mindy on BiggerPockets Scott on BiggerPockets Listen to All Your Favorite BiggerPockets Podcasts in One Place Join BiggerPockets for FREE Email Mindy: [email protected] Email Scott: [email protected] BiggerPockets Money Facebook Group Follow BiggerPockets Money on Instagram “Like” BiggerPockets Money on Facebook BiggerPockets Money YouTube Channel Save $100 on Real Estate’s Biggest Event of the Year, BPCON2025 Get to FIRE Faster with “Set for Life” Sign Up for the BiggerPockets Money Newsletter Find an Investor-Friendly Agent in Your Area BiggerPockets Real Estate 1,095 - Scott Trench: How I’m Protecting My Money From “Irrational Exuberance” (00:00) Stock Market Update (06:44) Close to FIRE? Do This (14:41) Fix Your FIRE Portfolio (17:20) Lock-In Your FIRE! (19:02) Scott’s 2025 FIRE Portfolio (21:30) Already Retired/FIRE? (23:46) What About Taxes? (28:49) What if This Crash Lasts? (35:00) Start Shifting Toward Retirement Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/money-622 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected] Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	What happens when the stock market takes a nosedive while you're climbing your way to financial freedom?
0:05.9	Or what happens if it does this after you've already retired?
0:10.2	Today, we're going to be talking about how to succeed in market downturns.
0:14.1	And we promise you this isn't going to be a doom and gloom episode.
0:17.9	There will be takeaways for everyone, no matter where you are on your financial
0:21.8	journey.
0:27.2	Hello, hello, hello, hello, and welcome to the Bigger Pockets Money podcast. My name is Mindy Jensen,
0:31.4	and with me as always is my Still Believes in Fire co-host, Scott Trench. Thanks, Mindy. Great to
0:36.1	be here and always excited to spark a
0:38.1	debate with you, which I think we're about to have today. Bigger Pockets has a goal of creating
0:41.7	one million millionaires. You are in the right place if you want to get your financial
0:44.5	house in order because we truly believe financial freedom is attainable for everyone, no matter
0:48.1	when or where you're starting, including if you are afraid of a market crash. Scott, have you been watching the news lately?
0:55.6	I have been watching the news very closely lately.
0:58.1	How about you?
0:59.6	Not so much.
1:00.8	I have heard something about a market downturn, maybe.
1:03.8	Yeah, I think a lot of folks know that I got very fearful last month with sky high, to me, price to earnings valuations, that to me
1:14.8	signaled that a lot of things had to go right. Interest rates had to go get lower. Employment needed
1:21.6	to remain high. Inflation needed to come down. AI needed to bring about a surge in corporate profits and rise in the American
1:29.7	standard of living. And I just didn't think that that could happen. And I think that I wouldn't
1:36.3	have, I wouldn't have said, oh, if the market's going to go down 10% immediately after I say this.
	...

Transcript will be available on the free plan in 6 days. Upgrade to see the full transcript now.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from BiggerPockets, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of BiggerPockets and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.