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

11/04/21 • 38 min

1 Listener

Retire Smarter with Kevin Kroskey, CFP® & Tyler Emrick, CFA® CFP®

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

10-year forecast from Vanguard and Schwab

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.

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

10-year forecast from Vanguard and Schwab

Previous Episode

Ep 83: Biden‘s ”American Families” Tax Plan - Key Changes & Planning Opportunities

If you drive a car, I'll tax the street; If you try to sit, I'll tax your seat; If you get too cold, I'll tax the heat; If you take a walk, I'll tax your feet. "Taxman" - The Beatles Biden's tax proposals have finally been put into legislation and released on September 13th. Thankfully they're not as bad as the Beatles lyrics and tax increases were also less than what was expected. Hear Kevin discuss key proposals for individuals with the good, the bad, and those that didn't make it into the bill, and be sure to pay attention to the end to hear the key things to do to keep more in your pocket. Read more: https://www.truewealthdesign.com/ep-83-bidens-american-families-tax-plan-key-changes-planning-opportunities/ Today's rundown: 1:12 - Celebrating a birthday 4:33 - Background on the proposal 6:11 - The bad 10:44 - Backdoor Roths 13:36 - IRA change for accredited investors 16:02 - The good 21:20 - Things that didn't make it in 27:18 - Planning to-do items

Next Episode

Ep 85: What’s a “Conservative” Investor To Do These Days?

If you own a disproportionate amount of cash or bonds in your portfolio, you can be broadly classified as a conservative investor. With today's low-interest rates, being conservative is a tough investment row to hoe. Starting yields have been shown to explain 90%+ of returns realized from high-quality bonds. Ergo low-interest rates equal low returns. So what can you do?

0:58 – Catching up with Kevin

3:53 – “Conservative” investor in today’s world

9:16 – Getting a plan and risk

11:54 – Building a bond ladder

13:43 – Consider annuities

18:04 – Social Security deferring

19:03 – Don’t simply reach for a yield

Annuity breakdown:

https://www.truewealthdesign.com/episode-12-behind-the-curtain-of-annuities-and-free-steak-dinners/

https://www.truewealthdesign.com/episode-13-beating-up-on-variable-annuities/

Things to consider before years end:

Ep 62: Pension Lump Sums: 2021 May Be The Best Year Ever - True Wealth Design