Thursday Nov 04, 2021

Ep 84: Investment Allocation Update - Thinking About Your Investment Recipe

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.

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