Jesse is solo, answering your questions! Kate, a government worker with $650,000 in IRAs, is wondering how she can best rebalance her portfolio – and when. Dan seeks clarity on bonds’ role despite recent poor returns, learning they offer portfolio stability and mitigate market volatility, critical for risk-averse investors. Peter asks about Social Security timing, highlighting the trade-off between early claiming’s investment growth potential versus the guaranteed, low risk returns of delayed benefits, with traditional advice favoring security. Lucas, a young investor with a taxable brokerage account, asks about key considerations to include when setting up a dividend reinvestment plan. Lastly, Chris wonders how to judge between three potential advisors.
If you’d like a question in a future AMA, send Jesse a message!
Key Takeaways:
• How to mitigate your risk by diversification.
• Why a 10% “sandbox” could be the right thing for your portfolio.
• Should you employ a time based or an allocation based rebalancing strategy.
• When you should or should not use bonds.
• What is “transfer-on-death”?
• How to choose between financial advisors.
Key Timestamps:
(00:00) – Review of the Week
(01:15) – AMA: Portfolio Rebalancing
(10:45) – AMA: Understanding Bond Performance
(20:29) – The Role of Bonds in Inflation
(25:59) – AMA: Social Security and Investment Strategy
(29:37) – Understanding Risk-Adjusted Returns
(30:32) – Comparing Social Security to Risk-Free Investments
(32:37) – Potential Downsides of Early Social Security Collection
(37:39) – Lucas’s Taxable Brokerage Account Strategy
(50:38) – Chris’s Financial Advisor Dilemma
Key Topics Discussed:
The Best Interest, Jesse Cramer, Rochester New York, financial planner, financial advisor, wealth management, retirement planning, tax planning, personal finance, Tax Loss Harvesting Myths, Debunked: What You Need to Know Now, The Simple 3-Step Formula to Avoid Excess Taxes in Your Investments, Is Splitting Your Portfolio Between Advisors a Smart Move? Maximize Your Capital Gains: Proven Tax Strategies for 2024, How to Avoid IRS Fines: The Urgent 90% Rule You Need to Know
Mentions:
“Why Can’t I Take Social Security Early and Invest It?”
“I Wouldn’t Know Where to Start” – 16 Questions to Ask A Financial Advisor https://bestinterest.blog/financial-advisor-questions/
More of The Best Interest:
Check out the Best Interest Blog at bestinterest.blog
Contact me at [email protected]
The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.