Episode 256 - Would More Cash On Hand Get You More Return?

In this episode, Ryan Burklo and Alex Collins discuss risk and volatility in investment portfolios. They emphasize the importance of investing for future income and the need to get the allocation and risk profile right. They explore the concept of volatility and how it relates to the movement of money in investment accounts. They also discuss the traditional two-legged stool model of investing in stocks and bonds, and the need to bring back a three-legged stool model that includes cash. They highlight the flexibility and choice that cash provides in managing unexpected expenses and investment opportunities. The episode concludes with a question for listeners about the number of legs in their financial stool. If you would like to learn more about Quantified Financial Partners, please visit our website www.beerandmoney.net

Takeaways

Investing is important for future income and financial security.
Getting the allocation and risk profile right is crucial.
Volatility refers to the movement of money in investment accounts.
The traditional two-legged stool model of investing in stocks and bonds may not provide enough flexibility and choice.
Including cash in the investment portfolio can provide a buffer and allow for better allocation and risk management.
Having cash on hand is essential for managing unexpected expenses and investment opportunities.

Chapters

00:00 Introduction and Importance of Investing
02:28 Investing in 401k and Risk Profile
07:42 Understanding Bonds and Volatility
09:34 The Importance of Cash in Allocation
13:03 Flexibility and Choice Provided by Cash
15:23 Managing Unexpected Expenses and Investment Opportunities