30. Rick Ferri - Investing Masterclass: The Simple Truth About Making Smart Investments

Investing your money can be a scary, overwhelming, and confusing process. How do you create an investment plan that will not only support you through your golden years, but also give your children and grandchildren a strong inheritance? These are exactly the questions Rick Ferri has been answering for over thirty years, and some of his answers may surprise you. Rick has worked in a variety of finance roles, from his beginnings as a stock broker in a large Wall Street firm to running an industry-changing private advisory firm. At its peak, Rick’s firm was managing over $1.5 billion in assets and had a revolutionary low rate of just 0.25 percent per year. Today, he offers as-needed financial advice to families looking for the best way to build a more secure future. We sit down with Rick this week to talk about what really goes into making good investment decisions. He explains the machine that drives market fluctuations, the importance of a diversified portfolio, and the simple approach to investing that gives you the best chance at a solid return. Cut through the media hysterics and bad counsel from unethical financial advisors to discover how you can take back control of your money and your future. Key Takeaways Advocate for your own interests. Just because someone says they’re a fiduciary doesn’t necessarily mean they’re acting in your best interests. It’s best to learn all you can and be proactive in making sure you’re getting the best investment setup for you. Good investing is not sexy. It’s incredibly difficult for even the most educated financial advisors to outperform the stock market. You have a better chance of success if you invest in a solid, diversified portfolio and give it lots of time to grow. Investing in the stock market is betting on capitalism. As long as we continue to believe capitalism works and that it’s going to persist as the global financial system, the stock market is going to continue to grow and thrive. Tip The Scales Podcast Tip the Scales Instagram Maria Monroy Instagram Maria Monroy LinkedIn LawRank Website LawRank Instagram LawRank Facebook LawRank LinkedIn LawRank Twitter Rick Ferri Website All About Asset Allocation All About Index Funds The ETF Book The Power of Passive Investing Protecting Your Wealth in Good Times and Bad Serious Money: Straight Talk About Investing for Retirement The Bogleheads’ Guide to Retirement Planning Bogleheads Forum John C. Bogle Center for Financial Literacy Website John C. Bogle Center for Financial Literacy Facebook John C. Bogle Center for Financial Literacy Twitter John C. Bogle Center for Financial Literacy YouTube 00:00 Intro 00:34 Meet Rick 02:40 What Is a Fiduciary? 06:16 Bogleheads 08:54 Asset Allocation 15:05 Considering Investing Risk 17:08 Investing on the Global Market 23:17 Matching Asset Duration and Liability 24:17 The Golden Rules of Investing 27:24 Investing for Your Children 31:37 Dollar Cost Average 32:18 Individual Stocks 35:27 Managing Taxes with Investing 38:55 Reducing Investment Fees 42:20 How to Build a Well-Diversified Portfolio 46:07 Building a Resilient Portfolio 52:05 Planning Your Retirement Needs 55:32 Where to Begin 56:53 Picking a 401K Plan 59:30 Whole-Life Insurance Policies