Dec 28, 2018
Your financial statements are confusing. We'll work to clear up
the confusion. Along the way, we'll unpack the recent market
What You'll Learn:
00:56 –Unpacking Market Volatility.
- Wall Street certainly experienced ups and downs in the fall.
We've been in a bull market since 2009. That probably means we're
due for a bear market in the future.
4:02 - Does Volatility Change The Mood Around The
- Not particularly. We help our clients to plan for the
long-term. Our financial plans are built upon the expectation
getting a reasonable rate of return while protecting your
7:32 - Is Volatility Acceptable In
- While you need to protect your assets in retirement, you will
need some growth in your portfolio to keep up with inflation. If
you're going to get growth, ,you must expose yourself to some level
of volatility. Of course, there are
ways to manage the amount of risk in your portfolio and protect
your assets while still obtaining growth.
10:58 - Your Financial Statements Are Probably
- Each month, you probably get financial statements in the mail.
Of course, it's 2018. Perhaps you receive them via email.
Regardless, they're probably filled with a lot of jargon. We want
to give you a clear picture of what's happening with your finances.
As an example, your statements might come with an income
projection. They examine your net worth and in turn project what
you can reasonably expect to live on each month. However, these
statements are misleading. We really want you to see these as more
of a baseline.
14:00 - Factor Inflation Into Your
- Because of inflation, you're going to need more income in ten
to fifteen years than you will today. In other words, inflation is
the silent killer that tends to eat into your portfolio. Account
for inflation when developing your income plan.
15:06 - Defining Your Asset Allocation
- Your statements might contain a small pie chart divided into
lots of different "slices." These pie charts typically explain what
you're invested in.
17:29 - Find The Fees In Your Statements.
- Fees are tricky in the financial world. They're often hidden,
and they usually don't show up on your statements. Your advisor
should be straight forward with you regarding the fees associated
with your investments.
19:31 - Understand The Fine Print.
- You probably don't read the fine print associated with your
investments. While you shouldn't dwell upon it, we recommend you at
least glancing over the fine print in your statements. As you see
things you don't understand, ask your advisor. The fine print will
also contain many of the aforementioned fees associated with your
"Since 2009, the markets have basically been going straight
up...We're actually due for a bear market." - Joel
ScheduleYour Money Map Review: http://retire.johnsonbrunetti.com/contactjohnsonbrunetti
For further exploration of this topic and additional resources,
check out our blog here: https://johnsonbrunetti.com/understanding-confusing-statements/