Having a high risk tolerance and being willing to bear wild swings in an equity market is important for investment portfolios, but the challenge arises when one cannot bear the risk during a downswing and needs to cash out at a low point. It is crucial to incorporate optionality in an investment strategy to have alternatives other than selling stocks during market downturns.
What is the best way to divide up your investments among stocks, bonds, and other vehicles? Asset allocation is an essential yet confusing topic. That said, it is an area of critical importance when thinking about early retirement. This is because decisions made about asset allocation can have huge implications on portfolio performance, taxation, and ease of maintenance. Join us for this first episode in a two-part series, as Eric and Jason talk about their portfolios, the merits of simple vs. more complex strategies, the role of bonds, and the risks they considered along the way.
**Note: This content does not constitute investment advice and is being presented for informational and educational purposes only.