Afford Anything Ask Paula: “We Have $2 Million at 40 – Now What?”
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Oct 8, 2024 A couple with a $2 million net worth at 40 grapples with their investment strategy as they consider diversification beyond a one-fund portfolio. Negotiation tips emerge for individuals in union jobs, addressing the challenges of collective bargaining. One caller grapples with overseas properties amid rampant inflation and fears of losing significant investments. The discussion emphasizes adjusting portfolios, mastering everyday negotiation, and understanding personal financial thresholds to navigate these complex financial landscapes.
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Consider Asset Allocation
Transitioning from a one-fund portfolio to a diversified one is crucial as your wealth grows. This will help manage risk and improve returns in the long term.
Be Wary of High APY CDs
Avoid investing in high APY CDs from unstable economies, as they often indicate hyperinflation. Such investments may erode purchasing power over time.
Understanding the Efficient Frontier
The Efficient Frontier illustrates the relationship between risk and return, showing that higher returns require taking on more risk. It provides a framework for optimizing investment strategies.
