What went through your thought before we get into some other questions when you heard the dell draw the point we watch a lot of this.
Certainly the work that we do with our with her client short of what happened the other day.
Was there something called an inverted yield curve, that's a fancy way of saying that long-term bonds and short-term bonds for people investing.
Certainly if you go longer on something.
Ideally, you would make more money in it shorter, lower interest rate windows invert.
They have a long history of being predictive of recessions, and so when that happened the other day, spook the markets and run with tariffs and all the other things just made the world markets nervous and that's what we saw an 800 point drop so i guess i should ask about diversifying whatever your portfolio is no matter how big or how little this diversification really help you manage the risk release, or you in one of the things that we do in which level will chat about is, we actually look at a littl broader view of diversification.
So the typical i've got 60% stocks are 40% bonds and that could be part of it, but we use a lot of other strategies we actually have something that we write about the book called the three worlds of money where there's defensive strategies growth income may be emergency funds and die.
You can see it on the screen that we just think that there are more places wher you want to diversify rather than, i hope the 60% stocks and bonds is good help me weather the storm to go look at broader and deeper chip.
Are there any specific investment you might want to avoid in a situation like this original europe.
I think that it's important in to really know what you're your your level of risk it.
And so what we do is a detailed risk profile right and what that doe is help us determine what your thoughts are on the market what your financial situation is and it really helps us tailor our suggestions to you and what you're trying to get in retirement is the conventional wisdom of the younger you are, the more risk that you can comfortably pay cores that kind of fall by the wayside.
You know what actually we still use something called 100 albums not science and is normal life still but it is an age marker that you take your age subtracted from 100 and that resulting number i, the target of the amount of risk that you should have.
Certainly our bias in our firm is the onl our you probably want to be pulling back on the wrist that you take always true.
But that's kind of how we like to approach it as we help people get to and through retirement successful.
What about interest rate's how do you look at those in this particular situation.
If you're close to retirement.
How should the employee under longer-term strategy.
You know, rachel.
I want things that we do as we look at what's called interest rate risk you got stuck working risk on one side you interest rate risk.
On the other and the problem that were having right now chip in and we've all seen it is were actually seeing the move were interest rates by the fetter starting to draw so safe money, no bank cds, credit unio, those types of things rashly seeing those are pretty low so although it's safe you might not be a will to grow to keep up with your expenses.
So when i try to look at both interest- rate risk and market risk as we navigate thing called retirement, which is a rocky road and you should available for probe, no doubt about it much a moment ago.
The three worlds elaborate on that little bit more force.
Yeah, um, rachel.
What you share just a little bit about how we use those three worlds and in the top but some of the specifics that we use to help our clients navigate these kinds of time.
Absolutely sell one of things that we look at is history things that you want from any and you can't get all the thing that if one world and so will look at is putting your fines into each well to make sure that we diversify your retirement and they said were reaching the goals that you're trying to get his ideally chip i think folks listening home.
No, this will want to grow her money when times are good.
Most of us don't want to lose when times are bad and when you want some you want to get some and i wish you make our life a whole lot easier we can get all that in one place, but you gets some growth and maybe access, but no safety in some world and get safety and access but no growth in others.
And then you get growth in access but or maybe limited access but some safety.
And so that's why we use those three worlds to say how old are you, it's the purpose of the money and how much should go in each world rather than all things for all people and we paint with a broad brush says you should be treated just like the 22-year- old mike come in after you.
We leave it there.
It's so complicated were concerned talk about this for hours or you can get a, building a better retirement.
This will help our giving of this way to absolutel the act actually today you call, and were more than happy to giv you a compliment or a copy of the book you got the number on the screen it does say first 10 colors, but if your number 11 will be have all we look forwar to having you come back in the coming weeks will look at back at that's what what what has happened and gosh dislike you guys so much always original to get in touch with the experts.