Building Wealth Series - Ep. 2 - Smart (Not Dumb) Investing
Fetch error
Hmmm there seems to be a problem fetching this series right now. Last successful fetch was on October 21, 2023 05:48 ()
What now? This series will be checked again in the next day. If you believe it should be working, please verify the publisher's feed link below is valid and includes actual episode links. You can contact support to request the feed be immediately fetched.
Manage episode 374952014 series 3480399
In part 2 of this podcast conversation, I discuss the topic of smart investing. I begin by emphasizing the importance of taking care of financial responsibilities, such as paying off credit card debt and building a cash reserve, before starting to invest. I then explain that investing in equities or stocks is likely to bring growth to a portfolio over time, but diversifying with fixed-rate instruments can help reduce volatility. I highlight the importance of targeting portfolio growth that exceeds the rate of inflation to protect purchasing power in retirement. I advise against becoming a trader and instead encourages listeners to be long-term investors. I share my seven rules for wise investing, including allocating portfolios across different asset classes, diversifying within each asset class, and investing efficiently with low expenses. I also recommend working with a qualified fee-only investment advisor. I review the benefits of investing in exchange-traded funds (ETFs) over mutual funds, such as lower fees, higher tax efficiency, and greater liquidity. Note that ETFs track various indices and allow for geographic diversification. I cautions against investing solely in tech companies and emphasizes the importance of diversifying across sectors and markets. Finally, I discuss the allocation of portfolios between equities and fixed income, highlighting that personal circumstances and goals should drive these decisions. I encourages listeners to have an open and honest conversation with their fee-only advisor to determine the best allocation for their individual situation.
For more exclusive content, join me at DeGreen.com!
15 episodes