Afford Anything Q&A: Why Your Retirement Math Isn’t Adding Up
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Nov 26, 2024 Listeners dive into the nuances of financial planning, tackling questions about retirement and investment strategies. Discussions range from the right methods for allocating money across time horizons to evaluating the merits of value versus growth stocks. Attention is also given to how to accurately calculate financial independence and net worth, addressing common misconceptions. Historical insights from renowned investors are woven in, along with practical advice on navigating investments in an unpredictable economic landscape.
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Joanne's Financial Journey
Joanne shares her journey from being financially dependent to becoming proactive about her personal finances post-divorce. Her story highlights the importance of financial education.
Reassess Investment Strategy
Analyze your medium-term investments as CDs mature. Transition into more equities and less reliance on bonds to beat inflation.
Distinction Between Risk Tolerance and Capacity
Understand the difference between risk tolerance (psychological) and risk capacity (financial). Each person's comfort with risk can vary significantly from their financial ability to take on risk.