157 - How to Best Mitigate Risk in Your Investment Strategy

Scott and James discuss how to best mitigate risk in your investment strategy.

Planning Points Discussed

• Utilizing Time Efficiently
• Capital Appreciation
• Purchasing Power
• Other issues (IRAs, Inflation, Financial Goals, etc.)

Listener Question:

I'm really enjoying your podcast and generally agree with your advice. I'm 37 and a personal investor who is focused on long term investments for retirement. I have generally leveraged a higher risk strategy based on my age with index funds. My question is about the make up of the S&P 500 and specifically I’m concerned that the majority of the top stocks a large tech firms. It seems possible that we have seen the peek of these firms similar to the dot com bubble, so I’m rethinking continuing to invest due to this risk of collapse. Can you help me understand how to manage that risk?

Timestamps:

3:27 - What Is An Index?

7:05 - Why We Invest

11:22- Importance of Diversification

14:15 - How Do You Enjoy Investing?

16:59 - Market Capitalization

19:25 - Aligning Your Financial Goals

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James

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Scott

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