Is economic fear keeping you frozen? In this powerful episode, Rachael Van Pelt breaks down why now—despite recession talk, high interest rates, and media gloom—could be a golden window to buy your Next Act home or investment property. Learn how to leverage uncertainty, avoid herd mentality, and make bold, strategic moves that align with your longevity goals. If you're 50+ and considering downsizing, relocating, or investing, this episode is a must-listen.
Is economic fear keeping you frozen? In this powerful episode, Rachael Van Pelt breaks down why now—despite recession talk, high interest rates, and media gloom—could be a golden window to buy your Next Act home or investment property. Learn how to leverage uncertainty, avoid herd mentality, and make bold, strategic moves that align with your longevity goals. If you're 50+ and considering downsizing, relocating, or investing, this episode is a must-listen.
Chapters
00:00 Finding Opportunities in Uncertain Times
00:55 Seeing Past Sensationalized Headlines
02:54 Recognize When to Get out Ahead of the Herd
05:01 Wealth is Built During Times of Uncertainty
09:24 Overcoming Herd Mentality in Investments
11:35 Empowerment Through Decisive Action
Hey, hey, welcome back to Next Act Ninjas, the go-to podcast for mastering your health and wealth longevity. I'm your host, Rachael Van Pelt, and I want to thank you for joining me today. We have an incredibly important topic to discuss. One that's on many people's minds as we enter this uncertain financial climate in the US. As we come to the end of Q1 and step into Q2, there are so many gloomy headlines that, if we're not careful, can lead us to freeze in place, make rash decisions, or worse, do nothing at all. I want to help you look past all of the fear-mongering and politicization that's going on in the news today, because I believe with the right perspective and a strategic plan, you can turn this time of uncertainty into an opportunity for growth and prosperity.
You've probably noticed that just about every day financial news outlets are churning out clickbait headlines about the state of the economy. We see statements like "stock market sliding", "consumer confidence plummeting", "job market slowing", and "recession looming". If you're feeling anxious or overwhelmed by these headlines, you're not alone. But I think it's important to remember that all headlines are designed to grab our attention. They are sensationalized, politicized, and overly generalized. I'm not saying that there aren't actual economic challenges right now. Of course there are, but the reality is rarely black and white. It's rarely as ominous as the breaking news headlines would have you believe.
Instead of letting these headlines drive our emotions, I think it's important to look at the bigger picture of where we are and where we might be headed. Yes, it's true that consumer confidence has been dipping, which means that people are just feeling uncertain about their purchasing power and their future job prospects. And this makes perfect sense because job growth has been slow and the Federal Reserve has been slow to drop interest rates. And those factors are what make people afraid to change jobs or borrow money. Maybe it makes you want to batten down the hatches and wait out the storm as well. But let's consider what might be coming just around the corner.
Many economists predict that by Q3, the Federal Reserve will drop interest rates further, and that's going to bolster the economy. Historically, when interest rates decline, though, it triggers an upswing in demand for major purchases, especially housing. If you've been paying attention to the real estate market, you already know that higher interest rates over the past year have sidelined quite a few buyers, particularly people who are worried about affordability.
Once rates move downward, many of those prospective buyers are going to jump back into the market, and that's going to create renewed competition for existing inventory. And there's a limited housing when you combine that with the renewed demand, that's going to lead to upward pressure on prices. So if you're looking to buy, waiting too long could mean you're stepping back into a competitive market where prices are rising and properties are in high demand.
If you're contemplating your Next Act home, whether that's a vacation property, a downsize, or you're just relocating to be closer to family, I'm sure your natural impulse is to wait till things quote unquote "settle down". You might find yourself thinking, "I'm just going to hold off on that big move until there's a little more certainty in the world". But if you've lived through a few decades of market cycles, and you're listening to this podcast, I suspect that you already know that the economy is never completely settled. There's always something that causes uncertainty, whether that's geopolitics, inflation, unemployment rates, or global health crisis. If you wait for perfect clarity, you're going to end up waiting indefinitely. Meanwhile, you're going to miss out on a golden opportunity to buy or invest at better terms before the crowd rushes in.
I want to encourage you to think about uncertainty, not as a barrier, but as a potential advantage. You know, Warren Buffett has been quoted as saying, "Berkshire buys when the lemmings are headed the other way". Now, I'm not saying you should be reckless. This is not about throwing caution to the wind and piling all your money into speculative ventures. I'm saying, don't be a lemming! Recognize that herd mentality often drives the majority of people to act at exactly the same time, usually only after prices have already begun to rise again. If you can muster the courage and clarity of thought to move a bit earlier, especially if you have a sound strategy, you can position yourself quite favorably.
All you have to do is think back to previous recessions. Time after time, we've seen that individuals or families who were able to buy real estate or invest in the stock market during the low points of an economic cycle, they were the ones who benefited significantly once the recovery kicked in. Yes, it feels counterintuitive and it feels risky. There's no question about that. But as a realtor and investor, I can tell you that I've learned over the years taking calculated risks, when backed by research and a holistic plan can open doors that remain closed to those people who let fear drive their decisions.
My husband and I put in an offer on a home right when COVID quarantines kicked in. It was a scary and uncertain time. We were tempted to pull out multiple times. While most people were binge watching Netflix or baking comfort foods at home, we were packing boxes. We had no idea if we could even hire movers or if the banks would be open for business at closing. We had to move forward with faith and trust that it would all work out. Was it super stressful? You bet. But it was also a tremendous opportunity. We got into a neighborhood that we probably wouldn't have otherwise.
And let's face it, everyone was stressed during that time. We just channeled our stress into an advantageous move. We zigged when most people zagged, which is what I suggest you be prepared to do. Because do you remember what happened next? Lots of people followed suit. About six to eight months after we closed, there was a mini housing market boom. Everyone wanted to move and competition drove prices up such that many people paid well over asking. It gets crazy when you follow the herd, which is why if you want to get out ahead of the crowd and save a bit of money, you want to embrace a bit of economic uncertainty.
If you're looking to downsize, ask yourself, what are your goals? Do you want a lower monthly mortgage payment, or would you prefer to move somewhere with a cheaper cost of living overall? Are you looking for a community with amenities that you're going to enjoy in the next stage of life? Or do you simply want to tap into your home's equity and simplify your lifestyle? These questions are personal. The answers are going to vary from person to person. But the underlying principle is universal. Don't let a barrage of negative headlines keep you from planning and executing a move that's going to be aligned with your lifestyle goals.
If you have the means and the desire and you've done your homework to ensure that you can afford the transition, then making that leap during a period of uncertainty could help you get into the home you want at a much better price with far less competition. Then when interest rates drop and a wave of buyers come flooding back, you're going to be so glad you got out ahead of the crowd.
The same logic applies if you're considering a vacation home or an investment property. Yes, there are concerns about short-term rentals, potential recessionary trends, local market conditions, but consider the long-term horizon. If you're in your 50s or 60s, you still have ample time to enjoy the benefits of a second property or generate rental income, if that's your plan. And if you wait for the headlines to scream "all clear!", you're going to find that everyone else has already decided it's safe too. They're going to jump in as well, and that's going to push prices up, lower available inventory, and dilute the opportunities that once existed.
Now I want to be very clear here because I don't want anyone to interpret my enthusiasm for taking action as any sort of disregard for financial caution. It's crucial to make sure that your retirement accounts, your pensions, your social security, or whatever else funds your golden years, you gotta ensure that they're in good shape. They're not going to be compromised by a big move. It's also smart to consult with professionals who can offer guidance tailored to your unique circumstances. But once you've done that, once you've run the numbers and accounted for potential risks, it might be time to be bold and decisive while others are retreating. That just might be in your best interest in the long run.
Because one of the biggest mistakes that I see people make is that they succumb to the herd mentality. Let's face it, it's extremely tempting to do what everyone else is doing, especially when uncertainty looms, because we're hardwired as humans to seek safety in numbers. But in finance, doing what everyone else is doing typically results in missing out on the best deals and opportunities. The headlines might scream, "Stock market is down, time to panic!", or "Housing is volatile, you better stay away!", but if you look historically, those are exactly the times when people who were calm, informed, and strategic made moves that later paid off massively.
And yes, the flip side of that coin is that some people have lost money making rash moves in uncertain times. That's why I keep stressing the importance of having a plan, doing your research, and knowing your risk tolerance. If you're nearing retirement or already in retirement, you don't want to gamble your entire nest egg on a high-risk investment without any clear backup plan. On the other hand, if you have enough flexibility, liquidity, or a range of income streams, this period of doubt and hesitation among the masses could actually be the perfect moment to act.
I know that stepping out of your comfort zone can be scary. After all, we're bombarded with media stories designed to make us fearful. The news cycle thrives on dramatic narratives because those are the narratives that get clicks, views, and attention. And it's vital to remember that many media outlets focus on the sensational aspects of the economy, whether that's political drama, cataclysmic predictions, or worst case scenarios. They don't focus on nuanced reality. It can feel like the sky is falling and opportunities are scarce when in fact, there's an abundance of opportunity all around. By the time the media starts reporting the positive turnarounds, it's usually far too late for good deals.
Now let's not forget that life is short. There's more to consider than just your finances. Waiting another year or two for a mythical period of "stability" means losing precious time that you could have spent enjoying a new community, being closer to grandchildren or experiencing the lifestyle you work so hard to achieve. If your personal health and wellbeing would benefit from a move, why let the negative energy in the news hold you back?
Your psychological wellbeing matters. We often underestimate how draining it can be to live in a state of indecision. When you delay a big life move indefinitely, you're carrying around that mental burden day in and day out. Taking decisive action, especially when it's backed by careful thought and solid data, that can lift that weight from your shoulders, free up mental bandwidth, and provide a real sense of empowerment. That feeling of forward momentum is often worth its weight in gold, and it's something that you just can't put a price tag on.
So as we look ahead to the next six months, we have to remember there's a good chance that interest rates will remain elevated, the stock market will experience volatility, consumer confidence will remain low, and the job market may see more cooling. They'll throw the "R word" around a lot more, recession, right? But none of this automatically means that you should batten down the hatches and wait. Yes, be cautious, but don't be paralyzed. Yes, do your homework, but don't let yourself be drowned out by the noise of the crowd.
There are lots of reasons to think that we're going to see another boom in the housing market in the not so distant future. It's highly likely in a few years we're going to look back at this period as one of the best times to have made a move, whether that's buying a home or purchasing an investment property. Wouldn't you rather be the person who acted deliberately and confidently rather than the one who sat on the sidelines and wondered what might have been?
Bottom line, some of the best opportunities for building wealth come during uncertain times. But you can't follow the herd. It takes a longevity mindset, a willingness to block out the doom and gloom, to stay informed, and to take calculated steps that align with your long game. Thank you for joining me for another episode of Next Act Ninjas. If you're ready to make your next bold move, just hop on my calendar for a free consult call. You'll find the link in the show notes. I'd love to help you think through your next steps.
Until next time, my friends, live well, love more, age less.