As promised to the more than 125 attendees of this Puget Sound chapter presentation, Paul answers the following 20 questions. Since many investors have the same or similar concerns, this podcast should be of interest and use to a broad range of investors, from first-time to well into retirement.
Paul explains why to have bonds in your portfolio and the best ways to get invested if you are afraid of losing money in a rising interest rate market. This should be one of the easiest of all investing decisions but, with all the worry about inflation and higher interest rates, many investors are paralyzed. The answer is simple for those who are pure buy and holders, and simple for those who want to apply a little market timing. Paul addresses both groups, but concludes that very simple is not necessarily very easy.
This podcast discusses my approach to dealing with all the theatrics and challenges of the recent weeks. I have received lots of emails wanting my response to the idea of selling everything until we know the outcome of the recent political stalemate. I know exactly what to do. Do you? If not, I hope this podcast will help.
Active managers of mutual funds want investors to stop their massive move to index funds. Anytime the S&P 500 outpaces actively managed funds, experts suggest that actively managed funds should start doing better. They fail to mention that their suggestion to move to actively managed funds is a market timing recommendation. In the next breath they say they don't believe in market timing. One thing that makes index investing so effective is that investors no longer have to play the game of "where should I move next?" Listen and learn what this can mean for you.
With the market hitting new market highs, what should investors be doing? Emotional times in the market can help investors do very smart – or very costly – things for the long term. This podcast intends to help investors do the smart thing!
Due to earlier concerns about the risk of loss, many of you are facing the challenge of not having your money fully invested. How do you get back in? All at once? That is dangerous, as you might buy-in right at the top, before a huge decline. Or a little bit at a time? That's dangerous, as the market can always go down after the "little bit at a time" is all invested. Is there a compromise? Paul suggests a solution that might work for nervous investors.