Peak FP Podcast: Why Your Retirement Investment’s are At Risk

[@markgregotski8973]

Great point on diversification. People today believe market weighted ETFs like VOO or SPY are diversified, but actually they are heavily weighted to about a dozen stocks. If those stocks or the sector they are in becomes out of favor then those ETFs will decline significantly. Looking at sectors such as tech, energy, utilities, consumer staples, etc is more diversified, and as you pointed out, you can prune these much easier.

[@billkellet2778]

Thank you.

[@ThePeakFP]

You're welcome!

[@FrankRizzo401]

Awesome advice. Thank you

[@markb8515]

Thanks Eric for another very informative video!

[@ThePeakFP]

You bet!

[@OffGridandOutdoors]

Great video

[@Chris-jt1vy]

Great video!! Thank you

[@ThePeakFP]

Glad you liked it!

[@andywang4495]

Great explaination for the average person. Thanks!

[@ThePeakFP]

Glad it was helpful!

[@richarddebiliere169]

Another great video, thanks.

[@ThePeakFP]

Glad you enjoyed it Thanks as always for your support

[@Steve_SEC]

What do you think about dividend ETFs such as VIG, or does VTI provide sufficient dividends?

[@Steve_SEC]

The problem with dividend ETFs closer to retirement is that they will drop as much as VTI without the upside. Instead, I dropped my VTI to 60% and bought VMFXX as a bulwark to market drops. I would love to hear your thoughts on what did not decrease in 2008 and 2020 as stable investments for my 40%, especially as interest rates decrease

[@enonknives5449]

This is utterly false. High dividend stocks DO NOT fall as much as low/non-dividend stocks. The dividend acts as a buffer. Dividend stocks also may have just as much upside as the market. You are missing the truth if you are only looking at share price and not considering dividends on top of price appreciation. You have to look at total return: share price growth plus dividend income.

[@Steve_SEC]

@@enonknives5449 SCHD was not around in 2008 but VIG’s total return was-37%. However, Morningstar notes that the benchmark for SCHD had a maximum drawdown of 44.5% during the 2008-2009 bear market.

[@OffGridandOutdoors]

Rather than bonds I'm using a MYGA ladder right now

[@swright5690]

VTI is total market. VOO is S&P 500.

[@ThePeakFP]

Thanks for catching this :D

[@qaibkkfarm2023]

How do I get the most interest for my cash bucket inside Vanguard?

[@pensacola321]

When you are retired you don't want to plan on market gains to live.

[@michaelt2974]

Wow! You mean you have enough just sitting in cash to fund your retirement?

[@dilbarjani007]

@@michaelt2974love that , you are winning

[@jeffreydrennen9453]

Disagree. Most people need growth over the course of their retrirement.