Building Optimal Portfolios | Portfolio Blueprint 1 of 5 #investing #retirement
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
[Music] there's a lot of advice out there on what stock to buy or what fun to buy but at the end of the day you need to remember you're not buying a stock you're not buying a bond you're not buying a rental property what you're really trying to do is build a portfolio and the idea of a portfolio is that it's going to be greater than the sum of its parts these are the Investments the engine that drives your financial plan which ultimately generates your cash flow and retirement which also generates tax taxes that you'll want to minimize so we'll go over some examples of how your Investments can be used to not only generate income but also reduce your taxes what I want to cover first is a – tested investment philosophy and what this means is that there are a lot of different ways to invest and our belief here at pure is that you want to find a way to invest that's based on academic research and empirical evidence as well as logic because if you can do that then you can have controls in place to manage your emotions you can reduce your taxes and you can generate the cash flow that you need while still sleeping at night and that's going to give you a better chance of sticking with that investment philosophy through the inevitable ups and downs you're going to encounter as you walk that path as an investor what I want to begin with is key elements of proper portfolio construction and really it all begins with getting the return you need think about it this way if you're going on a vacation somewhere yes you want to get there as directly as possible if you're flying you want less flight delays if you're driving you want less traffic but really the first determinant of whether it's a good vacation is whether you reach your destination so the number one goal of investing is that you want to get the return you need that while taking as little risk as possible and what that is is having gone through your cash flow planning there's going to be a return that matches up with your financial goals if you don't get that return across the next years and decades well you're going to run out of money or you're not going to meet your goals so one of the tools that you can use for this is Broad diversification and that's owning Securities both at home here in the United States and abroad in other countries stocks and bonds real estate all different asset classes of course you're going to want to use research something that you can hang your hat on and say okay this is an approach that's worked over time now that's not a guarantee it'll work going forward but it's better than just guessing what the future might hold and then finally of course there's a lot of uncertainty out there there's politics there's the economy there's International Affairs all of those are beyond your control but there's also some factors that you can control on your journey to financial success
