Retire With Purpose - The Retirement Podcast

424: If Stocks Beat Bonds, Why Diversify?

Mar 1, 2024

Exploring the debate between stocks and bonds, the podcast delves into the idea of 100% equities as a superior investment strategy. They discuss aligning risk and return, utilizing modern tools beyond traditional investments, and debunking misconceptions around all-equity strategies for retirement savings.

26:17

Creator website

Episode guests

Casey Weade

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Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Consider individual risk tolerance before increasing stock allocation to maximize returns.

Diversification beyond stocks and bonds with alternative investments can enhance portfolio performance and manage risk effectively.

Deep dives

Reconsidering Investment Strategies

The podcast delves into the idea that investors should potentially shift towards a 100% stock allocation based on recent research findings. The research suggests that higher returns can be achieved by fully investing in equities rather than the traditional 60-40 mix. It emphasizes the importance of understanding individual risk tolerance and long-term investment goals when considering such a significant alteration to portfolio allocations.

Introduction

2min

Rethinking Equity Allocation for Long-Term Investments

8min

Exploring Modern Investment Tools and Strategies

8min

Debunking the All-Equity Strategy for Retirement Savings

2min

Exploring Personalized Financial Strategies and Continuous Improvement

5min

Don’t believe everything you read. In this episode, we discuss the latest research on stocks vs. bonds and why academically sound research may not apply to your situation.

Join us as we discuss:

Balancing risk and return
Building a portfolio based on your unique needs
Utilizing modern tools that go beyond stocks and bonds

Today's article comes from AQR.com titled, Why Not 100% Equities. Listen in as Founder and CEO of Howard Bailey Financial, Casey Weade, breaks down the article and provides thoughtful insights and advice on how it applies to your unique financial situation.

Our Market Outlook Webinar is live! Visit https://bit.ly/4bmHkUb to register.

Show Notes: RetireWithPurpose.com/424

Rate & Review the Podcast: RetireWithPurpose.com/review

📧 WEEKEND READING FOR RETIREES: Receive CFP® insight on 4 hand-picked financial articles delivered straight to your Inbox each Friday: https://bit.ly/3OEdGgu

📅 SCHEDULE YOUR PERSONAL FINANCIAL REVIEW: Book a 15-minute call with Howard Bailey Financial to see how the topics discussed here apply to your individual situation: https://bit.ly/3z5mXIw

ABOUT HOWARD BAILEY FINANCIAL: Our mission is to help others gain clarity in purpose and elevate meaning in their lives through personal and practical financial strategies. Our Retire With Purpose™ Framework starts with establishing your unique financial philosophy — the true meaning and purpose for your money in retirement. Through continued education, one-on-one meetings, and a comprehensive team planning approach, we have helped retirees across the country secure their financial futures. And while we can't work with everyone, our goal is to provide value to everyone we meet. Our team of advisors and support specialists strive to deliver the very best experience in pre-retirement and retirement planning. Learn more about our process here: https://howardbailey.com/our-process

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