2FD 026: Unshakeable Book Study Part 6

Do you understand the different types of assets you can invest in and where to place them?

Holding different types of assets in your portfolio is critical to help minimize the downside and for creating an asset allocation that works for your lifestyle. There is no magic calculation to determine the right asset allocation for you, but understanding how you plan to use the money that you’re saving and when you’ll need it will help you determine the right split for your portfolio.


It’s important to understand tax-efficient placement of funds for your portfolio and how to build up towards your desired allocation. CHA-CHING!

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Discussion Points

  • Listener Question: Cloud services for backing up files on your computer.
  • People do what they know how to do, which may not always be the best advice for you.
  • Your life situation is unique and you need to understand your own risk appetite.
  • Taking calculated risk, not making (bad) decisions on the fly.
  • 60% of millennials don’t trust the financial markets.
  • Peter Mallouk from Creative Planning provides some first-hand investment management advice for your portfolio.
  • Weathering storms for the recovery after.
  • Investing when the stock market is on sale.
  • Understanding the different types of asset classes to diversify your portfolio with: Stocks, Bonds, Real Estate Investment Trusts (REITs), Private Equity Funds, Master Limited Partnerships (MLPs).
  • Avoiding Gold and Hedge Funds.
  • Tax-Inefficiencies of non-liquid alternative investment assets/collections.
  • Sean’s Pokemon Cards & Kevin’s Baseball Cards.
  • Determining the right mix of assets for your portfolio after understanding what you’re saving for in the first place.
  • Japan still has not recovered from it’s 1989 all-time high.
  • Peter’s Rule of Seven: Having 7 years worth of expenses in income-producing assets for your portfolio.
  • Sean shares his 4-fund portfolio and asset allocation split.
  • Re-balancing your portfolio with new savings to get assets at a discount.
  • Working towards your desired asset allocation from a low balance.
  • Looking at your asset allocation across your whole, combined portfolio, not separate asset allocations.
  • Knowing what accounts to place certain assets in for for tax-advantages.

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