The Dentist Money Show | Financial Planning & Wealth Management #723: How to Crash Proof Your Portfolio
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Dec 30, 2025 Explore the power of diversification as a cornerstone of smart investing. Discover why holding large cash balances can be riskier than you think, especially in light of inflation. The hosts dive into the nuances of risk, highlighting the importance of understanding purchasing-power erosion. Historical data shows globally diversified portfolios tend to perform well over the long term. Learn how liquidity allows you to capitalize on market dips and the benefits of rules-based rebalancing for maintaining your investment strategy.
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Dentist Sitting On $2M Cash
- A dentist sat on over $2M in cash for more than a year waiting for a crash.
- He feared investing because he thought a market pullback was imminent and wanted to time it.
What 'The Market' Actually Represents
- The stock market represents millions of people and businesses improving their lives over time.
- Betting on broad markets is a bet that economic progress continues, which explains long-term recovery.
Different Kinds Of Risk Matter
- Risk is not one thing; short-term volatility differs from permanent loss of purchasing power.
- For long horizons, the main risk is permanent loss of capital via inflation or ruin, not day-to-day swings.