Investment Strategy for Millennials: Allocating Bonds

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The chapter explores the importance of dividing money into different buckets for millennials and discusses the suitability of bonds for the emergency fund. It highlights the historical performance of a portfolio consisting of 88% bonds and emphasizes the need to consider uncorrelated investments and after-tax, real returns.

On today’s Millennial Investing Rewind Episode, Robert Leonards chats with Chris Kawaja to learn about why and how he believes you should be investing your emergency fund, using The Ultimate Liquidity Portfolio strategy. Chris is a Stanford and Harvard graduate who worked at Goldman Sachs and Bridgewater Associates, which some may recognize as this super investor, and one of my favorite investors, Ray Dalio’s firm. Chris is also a successful entrepreneur, author, and real estate investor.

IN THIS EPISODE, YOU’LL LEARN

00:00 - Intro

03:39 - How money in a high-yield savings account, like an emergency fund, actually lose money over time.

06:45 - Three major finance trends that have altered the investing landscape.

09:22 - What is "The Ultimate Liquidity Portfolio” strategy?

09:22 - How has this strategy performed in the last financial crisis?

20:51 - Is it really necessary to have a mix of stocks and bonds in your portfolio to create wealth?

40:53 - What are the "jobs" money has in one's life?

And much, much more!

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

BOOKS AND RESOURCES

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Recommended Book: How To Stash That Cash by Chris Kawaja.
Recommended Book: Broke Millennial by Erin Lowry.
Recommended Book: The Richest Man in Babylon by George Clason.
Recommended Book: Broke Millennial Takes On Investing by Erin Lowry.
Recommended Book: Millennial Money by Patrick O’Shaughnessy.
Check out the books mentioned in the podcast here.

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