Ep 30: 5 Financial Truths You Can Rely On
As we’ve seen over the last month, a market downturn can happen quickly and it causes many people to evaluate their financial situation. As you’re doing that, pay attention to the lessons that can be learned in times like these. On this episode, we’ll talk about five financial truths that are even more evident now than they were to start the year.
The Reality of the Matter:
All good things come to an end and the bull run of the past 11 years officially came to a halt.
Unfortunately, the downside happened rapidly and didn’t give people a lot of time to make decisions. Hopefully you were already on top of your financial future and had a plan in place, but many people will have to rebuild their portfolios when the markets finally stabilize. It’s not a position you want to find yourself, but there are always steps you can take to get your finances back on track.
When we talk planning, there are truths that you can always rely on. In this episode of the Retirement Reality Podcast, Mike Kojonen will lay out the five things that you need to keep in mind when working on your finances. The timing of this episode is perfect because all of these truths are evident as we deal with the coronavirus fallout.
Here are the five that we’ll discuss in detail on this show:
1. TV can be your worst enemy.
2. It’s important not to react emotionally.
3. The market will always go in cycles.
4. People aren’t as risk tolerant as they believe.
5. There’s no magic bullet in finance.
We also get to two listener questions today that are timely as well. We’ve heard these same questions from clients so it’s not surprising to see them come into the podcast. A lot of people are considering investing alternatives to the stock market and gold and cash are two popular ideas. Let’s find out what Mike thinks about those two and what you should be considering before you make any decisions. Of course it’s always important to work directly with an advisor to determine your best course of action.
2:17 – Today’s topic is on financial truths.
2:49 – 1st truth: TV can be your biggest enemy.
4:04 – 2nd truth: It’s important not to react emotionally.
5:15 – 3rd truth: The market will always go in cycles.
6:48 – 4th truth: People aren’t ask risk tolerant as they think they are.
9:01 – 5th truth: There is no magic bullet when it comes to retirement planning.
13:56 – Mailbag Question #1: Is it wise for me to own some gold in my portfolio? What percentage?
14:58 – Mailbag Question #2: The coronavirus scare has me convinced the market will keep crashing again and again. I’m ready to move everything to cash right now. Is there any reason to wait?
Thanks for checking out the Retirement Reality Podcast. We’ll talk to you again next week.