When you go to the doctor, they help you diagnose the issue. When you go to a financial advisor, what kind of financial problems or diseases can they help you discover and treat? Financial “doc” Nathan talks through these possible treatment plans.
Suffering from acute portfolio risk-opathy? Could cause upset stomach and nerves, but what should you do financially? Find out the standard of deviation or the measurement of volatility. It’s crucial that you discuss with your advisor what kind of risk you have in your portfolio.
Another thing you don’t want to come down with is old fogey’s disease. No one wants to run out of money at the end of their life because they didn’t plan properly. Make sure you have a plan that works for you and that you follow. The plans are built for a reason. A good financial plan should have the ability to do some what-if scenarios.
Right now, we’ve all got a case of inflation-itis. Rent, food, gas, and a lot of costs from daily life are all up, which eats away at our purchasing power. The only way to combat that is by investing in stocks. Another thing we can’t get away from is the possibility of needing a nursing home and watching your wealth go away. No one wants to think about that, but if you don’t make a plan, this can cause serious damage.
Finally, Uncle Sam syndrome is when you lose too much money to taxes. Expecting to pay less in retirement isn’t a given. It comes down to proper planning in advance. You can’t wait until you’re retired to do tax planning for retirement. Set up different buckets of money and use them to your advantage.
Listen to the entire episode or skip ahead using the timestamps below.
1:49 – What to do about acute portfolio risk-opathy?
5:19 – Suffering from old fogey’s disease?
7:44 – We all have inflation-itis.
12:27 – We can’t avoid nursing home-a-tosis.
18:54 – Uncle Sam syndrome is something no one likes.
A Point Of Wisdom:
“Diversification is always your friend, it always will be from now on. Don’t put all your eggs in one basket and that doesn’t mean one stock–that means not even the same asset class.”