You want to protect the money from inflation, but you also need it to be in a relatively low volatility asset because of the fact that you have a five year time line. One is how flexible are you with this time line? If if you're ok with that, and you have that flexibility, put it in an index fund. The other approach is for tips, treasury inflation protected securities. Those are protected by the full faith of the us. Treasury. It achieves the goal of not eroding the savings to inflation. You're not going to experience growth, but you will be able to hold to your five yeartime line.
#399: Bella is SO CLOSE to reaching F.I.R.E and is worried about her withdrawal rate if the stock market drops. If the stock market does drop, can she withdraw as much as she had originally planned?
Sam has been investing for several decades and thinks that he should stay invested in his portfolio, despite the recent drop in value…but he is still wondering if there’s a chance that he should sell.
Meisha is making more money at her new job but can’t contribute to her 401(k) for the first six months - what should she do with her extra money in this interim??
Kyria is a young investor with multiple goals: she’s wondering how to best save for a downpayment without it being eroded by inflation and also whether her investment choices should take on more risk, since time is on her side.
Former financial planner Joe Saul-Sehy and I tackle these four questions in today’s episode.
Enjoy!
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For more information, visit the show notes at https://affordanything.com/episode399
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