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Episodes by Topic: Investment
Best of Talking Money: Stocks and Bonds
What is a stock? What is a bond? How do they work?
Stocks: what they are and how they work. Stockholder owns part of the company. Stocks are sold at an auction, so the price does not reflect the value of the company. Your money doesn’t actually go to the company.
Bonds: you are investing in the debt of a corporation or government, basically giving them a loan. Have a time limit. Interest rates can affect bonds as well.
Why is it important to stay diversified in stocks and bonds? What about just riding out the rise and fall of the market?
What is the danger of following the “guru” who got their guess right once?
Listen to the EpisodeMarket Volatility Concerns
Mike answers a number of questions related to the current market volatility and general investing:
- Is it still safe to invest in the stock market? Is it less risky to invest now?
- Are there any particular sectors or stocks to consider investing in?
- How should an investor react to the ups and downs in the market?
- Are annuities as really as low risk as they promise?
- What cautions should I take when investing in real estate?
For more information, read this article from Ronald Blue Trust’s investment team.
Stocks and Bonds
What is a stock? What is a bond? How do they work?
Stocks: what they are and how they work. Stockholder owns part of the company. Stocks are sold at an auction, so the price does not reflect the value of the company. Your money doesn’t actually go to the company.
Bonds: you are investing in the debt of a corporation or government, basically giving them a loan. Have a time limit. Interest rates can affect bonds as well.
Why is it important to stay diversified in stocks and bonds? What about just riding out the rise and fall of the market?
What is the danger of following the “guru” who got their guess right once?
Listen to the EpisodeWhat is Your Risk Tolerance?
Do you know your risk tolerance? Mike looks at several questions, and your answers may surprise you.
Due to a general market correction, the price of one of your investments decreases 14% a short time after you buy it, what would you do?
- Sell it, so you don’t have to worry about if it continues to decline
- Hold onto it and wait for it to go back up.
- Buy more because it looks even better now!
You have just reached the 10000 plateau on a game show, so now you are at the point where you can walk away with your winnings or betting it all in one of three scenarios:
- Have a 50% chance of winning 50,0000
- Have a 25% chance of winning 75000
- Have a 5% chance of winning 200,000
“Risk doesn’t bother me as long as I don’t lose anything.”
“Overrating past performance is the most common mistake mutual fund investors make. Giving inadequate weight to risk, however you manage that risk, would be number two. And being willing to shift funds too quickly would be number three” – John Bogel
“Always diversify your investments” – Sir John Templeton
“If you don’t feel comfortable owning something for ten years, then don’t own it for ten minutes” – Warren Buffett
“Don’t try to buy at the bottom and sell at the top. It can’t be done, except by liars.” – Bernard Baruch
“The only function of economic forecasting is to make astrology look respectable.” – John Kenneth Galbraith
When looking at a publication about investing, look at back issues and see what they were saying. Were they accurate? Are they owning up to mistakes they made?
Want Mike and his team to come do a workshop for your company? Contact him at 1-800-588-7526 or mike@talkingmoneyradio.com for details.
Listen to the EpisodeInvestment Considerations: Bonds and Inflation
Mark Elam, Senior Investment Strategist at Ronald Blue Trust, joins Mike to discuss some important considerations to think about regarding your investments. They answer four listener questions:
- Is it hard to create my own portfolio of stocks, ETFs, and Mutual Funds?
- Is there a significant difference between owning a grouping of bond funds or owning a bond portfolio?
- Considering recent legislation and the concern of rising inflation, should I be more conservative in my investments?
- A couple currently in their mid-70s has their portfolio at 50% stocks and 50% in mutual funds. Is that reasonable?
Dealing with Inflation
Before diving in to inflation, Mike offers some advice on shopping for a financial advisor: questions to ask and resources to use to check the portfolio they are showing you
Mike then answers questions regarding inflation, such as:
- How has inflation affected things like buying a car?
- How does inflation affect investments? Your lifestyle?
- Typically, people only look at the risk of volatility when considering a stock, but they forget that is a temporary risk. Another, more important consideration is the loss of purchasing power. How does inflation affect this?
- What is the importance of rebalancing your portfolio?
He also discusses ways to deal with inflation:
- Reduce and pay off debt.
- Give appreciated assets instead of cash.
- Stay in stocks, but keep diversified as well.
To read the latest Economic Review mentioned in this program, click here.
Listen to the EpisodeGovernment and the Economy
Mark Elam, Senior Investment Strategist at Ronald Blue Trust, joins Mike to discuss how projected policies of the new administration may affect our economy.
Questions answered include:
- How does the makeup of congress affect the economy?
- Does all of this stimulus money drive inflation up?
- It seems the US Dollar is getting weaker in the global economy, is that a cause for concern?
- What about investing in things like gold?
- Is there a bubble in the stock market? How does diversification help stabilize a portfolio in a stock bubble?
Are you ready?
Mike discusses the biggest thing we all need to be ready for. He also answers listener questions about mutual funds and how the election and potential future shut downs could affect the market. He shares some positive words from the investment team of Ronald Blue Trust.
Listen to the EpisodeBest of: The Importance of Diversification
Highlights from show aired February 1, 2020.
Nick Stonestreet, CEO of Ronald Blue Trust joins Mike to discuss the importance of not owning too much of any one company’s stock. Nick and Mike both share stories of actual situations to illustrate the importance of an effectively diversified portfolio.
Listen to the Episode
Income in Retirement, Part 2
Part 2 of Can You Invest Too Conservatively
How should you structure your portfolio for a retirement income that still protects against the hidden risk of inflation? Mike discusses the dangers of investing so conservatively that you reduce the risk of your portfolio going down (volatility) while at the same time increasing the risk of loss of purchasing power.
Listen to the EpisodeSponsored By:
