Lessons From The 10-Year Bull Market

March 14, 2019

“RETIRE WITH INTEGRITY” PODCAST

The Principle:

It’s been 10 years since The Great Recession officially ended. Investors have profited immensely from the subsequent bull market, but some are afraid to continue investing. Brian examines what we can learn from the bull market and how to continue investing wisely.

(Click the featured times below to jump forward in the episode)

Honest Takes:

[00:15] – Did You Panic In 2008? If So, You Might Need To Reassess Your Risk Tolerance.

  • We’re in the tenth anniversary of the latest bull market, but some investors were afraid to get back in the market after they lost money in 2008. They were driven by fear, and they didn’t have a game plan. If you panicked in 2008, you probably had too much risk in your portfolio.

[2:30] – Determine Your Needs. 

  • Your needs in retirement will dictate how much risk you can afford to take in the stock market. If most of your retirement income is guaranteed, you can stand to lose money in a market correction as you won’t need the money that’s invested for a long time. Conversely, if you’re going to be living off of your 401(k) in retirement, you probably need to dial back the risk in your portfolio. Regardless, if you invest wisely, you can take advantage of the bull market.

[3:40] – Everything Carries A Risk.

  • Even your safest investments carry a risk. If your money is invested in a CD, you risk losing money to inflation. Inflation can be just as dangerous to your wealth as a market correction.

[5:50] – Don’t Over-Invest In One Stock.

  • Brian shares the story of a client who lost everything because most of his wealth was invested in one incredibly volatile stock.

[8:45] – National Debt Is Skyrocketing.

  • The national debt is more than $22 trillion. Congress doesn’t seem to be doing anything to curb spending, so we can only assume taxes will rise as a result in the future.

[10:32] – The Dangers Of A Debt Retirement Plan.

  • If you have all of your wealth in a pre-tax retirement account, you have a debt retirement plan. You might not think you have debt, but you’re in debt to Uncle Sam. When you withdraw from that account, Uncle Sam is going to tax your pre-tax accounts. Your IRA is an IOU to the IRS, and when you retire, the IRS will hit you with a hefty tax bill. Compound that with the potential for rising tax rates, and you could find yourself in trouble.

[13:04] – The Roth IRA Is A Powerful Tool.

  • Dave Ramsey is a financial radio personality out of Nashville. He advocates for the use of Roth IRA accounts as a way to alleviate your tax burden.

Today’s Truth:

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The Host:

Brian Bowen – Contact