Retire Smarter with Kevin Kroskey, CFP® & Tyler Emrick, CFA® CFP®
Business:Investing
Putting the odds of investing and retirement success in your favor should be a given as is being diversified. But what does diversification really mean? Ten stocks? One hundred stocks? Two asset classes or ten?
Building on the concept of standard deviation -- or degree of variability -- in investment returns, hear Kevin take the idea of diversification farther. Diversification is not just minimizing variability or owning the S&P 500. It's also reducing the risk of underperformance by owning the stocks and assets classes that will deliver higher returns and reducing the variability in dollar outcomes from your portfolio.
Miss just a few of the best performing stocks each year or abandon an underperforming asset class whose future returns are now higher, and your portfolio will deliver more disparate results that are more likely to put you into the poorhouse. And that's no way to run a retirement portfolio to last your lifetime.
The geek alert is sounded again for this episode but you don't have to be an investment geek to get significant value from this one.
Timestamps:
6:41 - Terminal Wealth Dispersion
11:23 - Reducing Risk
14:20 - Bill Bernstein’s Studies
18:32 - How This Impacts Retirement Planning
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth
Ep 27: Your Investing Process - Part 1
Ep 26: Mortgage Management
Ep 25: Death Of The Stretch IRA
Ep 24: Reasons to Invest Internationally
Ep 23: What Is Financial Life Planning?
Ep 22: Will Social Security Be There For Me?
Ep 21: The Story of Jane
Ep 20: Are Guarantees Worth It? Retirement Income Planning Series - Part 5
Ep 19: Dynamic Strategy: Retirement Income Planning Series - Part 4
Ep 18: Total Return Portfolio: Retirement Income Planning Series - Part 3
Ep 17: Bad-Timing Risk: Retirement Income Planning Series - Part 2
Ep 16: Retirement Income Planning Series - Part 1
Ep 15: Integrated Advice Is Better Advice
Ep 14: Long-Term Return Expectations
Ep 13: Beating Up On Variable Annuities
Ep 12: Behind The Curtain Of Annuities And Free Steak Dinners
Ep 11: Not Resolutions - Set Goals The Right Way To Start The New Year
Ep 10: Rules Gone Awry - A Lower Tax Bracket Part 2
Ep 9: Rules Gone Awry - A Lower Tax Bracket Part 1
Ep 8: Exorbitant Health Care Costs
Create your
podcast in
minutes
It is Free
The Commercial Edge: Unleash the Power of People
The emPOWERed Half Hour
U.S Property Podcast
Aligned Money Show
Dubai Property Podcast
The Ramsey Show
The Clark Howard Podcast