What is Your Freak Out Factor?
If the stock market goes into a freefall, will you know your freak out factor? MarketWatch says this is when someone panic sells and gets out of the market. How does Brian help people find what their freak out factor would be?
Brian helps clients find their risk tolerance number on a scale of 1-10. At 1, someone might only want to have money in CDs whereas at 10 someone is ready to put it all in cryptocurrency. You want to look at the entire picture when you look at your portfolio, not just one account. You may lose money in one account and make money in another if you are diversified.
Some accounts can be more aggressive if they have 15-20 years before you need to get at that money. Brian compares this to the real estate market. You’ve got to zero in on what you’re trying to accomplish with each bucket of money.
We also talk about inflation today. It’s clear that there’s been inflation lately, but is it here to stay, or is it transitory? Brian shares a client story about supply and demand right now. We’re all going to pay more as costs increase. So, what do you do about that? Don’t invest so conservatively that you are outpaced by inflation!
Listen to the entire episode or click on the timestamps below to skip ahead.
[0:12] – Will you freak out if the stock market falls?
[2:51] – Let’s compare to real estate investments.
[5:39] – How long will the inflation last?
“You’ve got to zero in on what you’re trying to accomplish with each bucket of money.”
Brian Bowen – Contact