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Episodes by Topic: stock market
How To Protect Your Money In The New Year And To Take Advantage Of A Bad Market
This week Mike shows you some ways to increase the interest on your savings and other ways to protect your money in 2023. Plus, he tells you some ways to take advantage of a downturn in market prices like tax-loss harvesting and a Roth conversion.
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 EpisodeShould Retirees Exit the Stock Market?
This week, Mike discusses whether or not a retiree should get out of the stock market. There are many concerns to think about, including:
- Do you have a pension plan?
- If you have an annuity, what issues should you consider?
- Could you possibly have a long-term care event before you pass?
- There are two different kinds of risk, and It is important to know what kind of risk you are talking about and how you handle both.
- Seen risk: volatility; being risk-averse or time to weather the next downturn (afraid of dying sooner)
- Unseen: inflation and the increasing cost of living (potential of living longer)
- Why is a diversified portfolio so important: like having investments in “time buckets”?
- People want to get to the point they don’t want to worry about money, but how much does that actually take? A lot has to do with how you view money and where you get your contentment.
- One of the biggest concerns seems to be health care: long term care events and how to pay for them.
- If you invest too conservatively, you might have to reduce your standard of living so that you don’t outlive your money.
Economic Recovery
Is the economy recovering from the effects of the COVID pandemic? Mark Elam, Senior Investment Strategist at Ronald Blue Trust, joins Mike to look at this issue from a variety of viewpoints. They answer questions such as:
- Has the economy started recovering already?
- How robust could the recovery be?
- Is inflation staying and increasing or will it be transitory?
- How will new legislation affect the economy?
- What is the velocity of money and why is it important?
- How can I protect myself against inflation?
Are We In a Bubble?
Mike reviews the most recent Economic Review and Outlook from Ronald Blue Trust. He discusses various market bubbles throughout history and whether or not the market is currently in a bubble environment. He also shares some thoughts on the life and schemes of Bernie Madoff who passed away earlier this week.
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?
Listener Questions: Answered
In this episode, Mike answers a variety of listener questions:
- What about helping the homeless veterans or other people out begging on the roadside?
- My mutual fund has some Puerto Rican funds in it. Should I be concerned? Should I trade out of that fund?
- Should I look at transferring some of my employee stock ownership plan (ESOP) into an IRA?
- How does using a Qualified Charitable Distribution (QCD) affect my Adjusted Gross Income (AGI)?
- What are some of the considerations for the Required Minimum Distribution (RMD)?
- What about using a Donor Advised Fund?
- I am just generally concerned about the current state of the stock market, should I sell everything and move to cash only?
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 EpisodeSponsored By:
