Investing Tips After Market Crashes

In this second hour, Joe and Al continue the discussion on the recent market downturn. What do you do with your investment portfolio after the market crashes? Stick to your plan, don’t let emotion cause you to make poor decisions and remember to rebalance to remain within your risk tolerance.

7:19 “Bonds should be used to help with the volatility of the entire portfolio”

8:48 “It’s better to invest in the market now than it was, say, a few months ago…you have a higher expected return today because the stock prices are lower”

11:27 “Here’s another thing that Warren Buffet says: ‘What counts for most people in investing is not how much they know, but rather how realistically they define what they don’t know”

12:51 “Our confidence when it comes to investing is when you make a lot of money in the overall markets, you equate that to skill, but then all of a sudden when the market goes down, you equate that to being unlucky”

14:19 “If you’re down in any type of position, that’s when you rebalance—that’s when you buy more”

17:21 “If you can pick the right investments for you, diversify, rebalance and during times like this keep your costs low, and then keep repeating those four things, you’re going to be ahead of everyone else”

26:48 “We’ve seen individuals in their 50’s who have very little money saved ($10,000, $20,000) who are living a successful retirement now because they were able to spend a little bit less, save a little bit more, work a little bit longer, invest their assets appropriately towards their goals, they’re not taking on too much risk”

32:17 “You have to look at the market as a standard market; it’s buyers and sellers. When things are uncertain, other buyers will have to buy it on sale. That’s a good thing”

33:04 “If you’re that emotionally tied to your money, you might want to make some changes”

35:46 “You want to make sure you have a strategy, not on how much that you can make, but how much income you can drive from the overall portfolio and what you’re going to do when things get ugly”

36:30 “It’s not necessarily about the investments, it’s about the structure of the overall plan”