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Listen to Johnson Brunetti's Money Wisdom with Joel Johnson CFP®, host of Better Money Television program and Forbes Contributor. Gain true financial wisdom and advice aimed at educating you about all of your financial options when it comes to retirement so you can make the best decisions for you and your family. Get information and education that can bring you peace of mind with your savings and retirement. Whether it’s your 401k account, IRA, or an underperforming asset, Joel Johnson can answer your questions and make you more aware of issues that may affect you.

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Apr 6, 2018

Today, we are going to talk about current events, and how the market is bouncing around. We are going to learn how to react to the market as it continues to shift and change.

Main Questions Asked:

  • How do I keep my emotions from getting the best of me during market shifts?
  • How can I remain calm when the market keeps changing?
  • Do I have a plan in place that will make me feel secure?

Key Lessons Learned:

Current Events and What Is Going on in the Market

  • The Mueller investigation. There is a lot of uncertainty. We don't know how it will turn out, but it is hanging like a cloud over The White House and the market.
  • The trade war. Every economist says this is a bad thing that could hurt us, but Trump promised to put protections in place for people left behind.
  • Facebook. Most people in business know that Facebook has people’s information. Instagram is part of Facebook.
  • Markets are unpredictable. It’s important to make sure that you have a financial plan in place.

Listener Questions

  • I am being forced into an early retirement, but my pension won’t be enough to live on. Do I need to find another job? There is no penalty to take money out of your deferred compensation plan. You need all of your information fed into a retirement income planning system. You need a plan.
  • What is the rule of 100? I believe in any rules based system that keeps you from doing the wrong thing and involving your emotions in investments. The rule of 100 says to subtract your age from 100. If you are 55, you should have 45% exposure to the market and the rest in something safer.

Good News and Bad News

  • You still have a lot of debt, but the interest is tax deductible. The bottom line is you need to have a tax analysis. This is a discussion in the context of an overall plan.
  • This mutual fund hasn’t performed well, but it has low fees. Cheap isn’t always cheap, and can sometimes be inconvenient.
  • Your portfolio just lost 40%, but it will come back eventually. That’s easy when you are a big business that will last a long time. Regular people may not be able to wait 10 or 15 years for the market to come back. It’s important that you have the correct asset allocation and a financial plan that fits you.

Links To Resources Mentioned

Money Map Retirement Review


Forced to Retire

Thank you for listening!