007 Investing 201 Why Investing Works

Investing 201 is the second in a 4-part Podcast series recorded to help you build an investment strategy and portfolio specifically tailored to you, yet still built on core fundamentals. Last week in Investing 101, you learned some basic fundamentals to get started -- which is kind of like knowing just enough to be dangerous. You learned three basic rules to follow for building a "buy box", or strategy for where to invest your money. In Investing 201 we help you complete the sides to your "buy box" by talking about risk and return, and diversification. Believe it or not, there is an actual minimum return you need to get to accomplish your long-term goals, and a minimum amount of stocks (and maximum amount of bonds) you can hold in a balanced portfolio to get there. You'll learn what that is, and what the tradeoffs are between that mix and a pure stock portfolio. There's also a lot of misconception about what it means to have a "diversified" portfolio: it's way more than just stocks and bonds. We talk about how to figure in cash into your diversification strategy, and also how true diversification is achieved with alternatives such as real estate. In other words, you'll learn that just buying bonds to "diversify" has more negatives than positives, and what to do to actually reduce risk while boosting returns. By the end of this episode, you'll have a 4-sided "buy box" and know the fundamentals about returns and diversification to create your strategy. This will prepare you for the next episode, Investing 301, when we discuss how to compare investment choices that fit in your "buy box," so you can pick the one with the best chance to get you to Financial Freedom. For a limited time, the first 100 subscribers to pre-order our mini-course, "Financial Freedom in the Military" will get FREE access to the course when it launches (coming SOON)!!! Sign up here: https://www.militarywealthcoach.com/joinus For a complete library of our episodes, blog posts, and more, visit www.militarywealthcoach.com, and follow us on all the socials by searching for Military Wealth Coach or @mwc112358.