3 Listener Questions that I CAN’T Answer, Ep #94

<p>Yes, you read the title right—there <em>are</em> some questions that I can’t answer. In this episode of the Retirement Made Easy podcast, I dissect questions submitted by Jerry, Dean, and Jean. All three asked great questions that I just can’t answer. So in this episode, I’ll explain why I can’t answer them, the information I would need to give an informed answer, and things each listener needs to question for themselves.</p> <h2>You will want to hear this episode if you are interested in...</h2> <ul> <li>[4:28] Speculative investments are never the answer</li> <li>[10:40] Retirement decisions must be made with your significant other</li> <li>[15:50] How age differences impact retirement planning</li> <li>[16:57] Why joint ownership can be dangerous</li> </ul> <h2>Speculative investments are never the answer</h2> <p>Jerry expects the price of a barrel of oil to soon be over $200. He’s wondering if he should shift part of his portfolio to energy stocks and mutual funds to take advantage of the opportunity. It’s a great question that I <em>can’t</em> answer. Why? I need to know more about Jerry’s situation. </p> <ul> <li>What is a <em>portion</em> of your portfolio? </li> <li>What is your risk tolerance? </li> <li>What is your overall goal? </li> </ul> <p>I don’t like speculating on things that might happen. I design a portfolio based on each person’s unique situation and what they’re trying to accomplish. How is your portfolio designed to get you to your retirement goals? If you can’t answer that, you need to rethink things. </p> <p>I met with a potential client who wanted to take half of his portfolio and invest it in GM and invest the other half in Ford. It was his <em>entire life savings</em> from working for 40 years. I told him that I couldn’t work with him. GM went bankrupt and the stock went to zero. Half of his portfolio was gone. Fortunately, Ford stock rebounded. But that was a risk he should NOT have taken. His decisions were based on speculation.</p> <h2>Retirement decisions must be made with your s