Having reasonable assumptions for investment returns is critically important for many reasons. These assumptions will impact your retirement plan, investment allocation, and your peace of mind.
Hear Kevin review discuss a recent letter written to his clients about the three broad categories of investments. He'll discuss high-level metrics on how attractive or expensive various parts of the stock and bond markets are and what to broadly expect in the years to come. Tune into the end when he discusses higher-yielding investments and how many investors are unwittingly taking more risk today than they realize.
Reminder: Investment returns are not guaranteed. There are costs to invest. Expectations discussed are just estimates and are probability-based (range-based) and are from Blackrock, Research Affiliates, Schwab and Vanguard per data available on their websites.
Read more: https://www.truewealthdesign.com/ep-84-investment-allocation/
Today's rundown:
0:55 – Catching up with Kevin
1:40 – Things to consider before years end
5:44 – How long does it take to start a plan?
8:13 – Investment allocation updates
11:15 – 3 categories of a portfolio
15:50 – Appreciation assets
16:21 – Vanguard and Schwab 10-year forecast
24:08 – Discount of foreign markets
26:44 – Is it more difficult to have a diversified portfolio?
28:47 – Preservation assets
31:54 – Credit risk and credit spreads
33:51 – Diversifying and DIY
Things to consider before years end:
Ep 62: Pension Lump Sums: 2021 May Be The Best Year Ever - True Wealth Design
Ep 31: Details In A Tax-Smart Retirement Distribution Plan - True Wealth Design
Ep 59: Retiree Health Insurance Part 2: Pre-Medicare - True Wealth Design
How to Get A $16,168 Tax Credit On Obamacare Even If You Are Affluent - True Wealth Design