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
Pension Lump Sums - You May Need To Act Now in 2022
The Story of Dr. Smith
Understanding Your Retirement Plan Results
Mailbag - Bear Market Investment Questions
Interview with Retirement Researcher Dr. David Blanchett Part 2
Interview with Retirement Researcher Dr. David Blanchett Part 1
Ep 100: Not So Smart Things Even Smart Investors Do
Ep 99: Whoa! Stocks and bonds both going down? What’s going on?
Ep 98: Interview with Retirement Researcher Dr. Michael Finke Part 2
Ep 97: Interview with Retirement Researcher Dr. Michael Finke - Part 1
Ep 96: Rules Gone Awry, Part 5 - Retirement Healthcare Is Exorbitant
Ep 95: Rules Gone Awry, Part 4 - The 4 Percent Rule
Ep 94: Rules Gone Awry, Part 3 - The Rule of 100
Ep 93: Rules Gone Awry, Part 2 - Take Social Security Early
Ep 92: Rules Gone Awry, Part 1 - The 80% Spending Rule
Ep 91: What Retirees Want in a Home
Ep 90: What Retirees Want in Time, Health & Relationships
Ep 89: What Retirees Want: Work In Retirement?
Ep 88: What Retirees Want: An Overview
Ep 87: How Pre-65 Retirees Can Get a Huge Healthcare Tax Credit
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