A bank used to run a TV ad during the SEC Game of the Week where a man, talking about retirement, says he plans to do “absolutely nothing.” His wife then leans in and says, “He means it.” That’s not a plan for retirement, that’s a plan for a vacation. Be careful not to confuse the two. Planning for retirement isn’t just about the financial, it’s also about your post-career purpose.
The best-selling personal finance author, Suze Orman, recently said, “I wouldn’t buy a cup of coffee anywhere, ever, because I would not insult myself by wasting money that way. You need to think about it as: You are peeing $1 million down the drain.” She goes on to say that coffee is a want, not a need. The barely noticed personal finance blogger and Certified Financial Planner™, Steve Byars, responded, “Horse Feathers!”
I have a friend who has been asking me for almost 3 years if we think the stock market is ready to take a dive. My answer is always the same: “What portion of your portfolio is actually invested in the stock market?” Why do I ask such a question? Because the return of the stock market only impacts her stock mutual fund investments. Her overall portfolio return depends on how all her investment types – cash, long-term income funds, stock funds, real estate funds, etc. – are mixed and how they perform together. This is called asset allocation and is an important investment portfolio technique that balances risk among various types of investments. So, here is: 1) A review of 2019 so far; 2) The stock and bond market returns in context and; 3) Our recommendation to focus on asset allocation, not the short-term direction of the stock market:
Enjoy this month’s edition that features an economic outlook and shred day announcement…
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