Is Your Investment Portfolio Ready for a Crash? (Strategic Asset Allocation)
Are you comfortable with what would happen to your portfolio in a stock market crash?
Risk and investments go hand-in-hand. There's no such thing as a risk-free investment, and there's no such thing as an optimal portfolio allocation that suits every person, either.
Whether you're investing in a stock market index fund, rental real estate properties, or even boring Treasury bonds, you need a financial risk management strategy that suits your personal risk tolerance. That's where strategic asset allocation comes into play - it's one of the most important risk mitigation strategies.
Unfortunately, most people don't actually know how to calculate asset allocation properly though. For example, did you know that the total assets in your portfolio can add up to more than 100%? This is called a leveraged portfolio, and you might actually be using financial leverage without even knowing it - especially if you have a mortgage. Our asset allocation formula will show you how this works.
Risk and return are linked, and a leveraged portfolio amplifies them both. In this video, we show simplified examples of the worst-case scenario when investing with different asset allocations and different amounts of financial leverage. We cover the difference between stocks, bonds, real estate, and cash - and we even analyze the portfolio risk of a 28-year-old multimillionaire!
More details on investing risk: www.tripofalifestyle.com/mone...
More about why we avoid debt and leverage personally: www.tripofalifestyle.com/mone...
Find Cody Berman on social media:
- / codydberman
- x.com/codydberman
Video contents:
00:00 - What Is Asset Allocation?
00:41 - How To Calculate Net Worth
01:22 - How To Calculate Asset Allocation
01:52 - Risks of Different Investments
02:44 - Market Crash Example without Leverage
03:17 - Leveraged Portfolio Asset Allocation
05:04 - Market Crash Example with Leverage
06:06 - Cody Berman's Multimillionaire Portfolio
#realestate #stockmarket #investing
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We're Lauren and Steven, and we followed some simple financial guidelines that allowed us to quit our full-time jobs forever by age 29. We created Trip Of A Lifestyle to share the knowledge that changed our lives for the better. All of our content is free.
Get rich. Work less. Travel whenever.
www.tripofalifestyle.com
Пікірлер: 22
Investing is not just about making money; it's about aligning your investments with your values and making a positive impact on the world. Risk comes from not knowing what you're doing....
@IshrakHossain-rt8is
Ай бұрын
People dont understand that the prices of things are never going back down. This inflation is deeper than we think. Those buying groceries are well aware that the real inflation is much over 10%. The increments dont match our income, yet certain investors still earn over $365,000 in stocks and assets. Wish I could accomplish that.
@alasdekarton
Ай бұрын
Very possible! especially at this moment. Profits can be made in many different ways, but such intricate transactions should only be handled by seasoned market professionals.
@bombasticlove76
Ай бұрын
Some persons think inves'tin is all about buying stocks; I think going into the stock market without a good experience is a big risk, that's why I'm lucky to have seen someone like mr Brian C Nelson.
@mohamedali-fj8xz
Ай бұрын
Finding yourself a good broker is as same as finding a good wife, which you go less stress, you get just enough with so much little effort at things
@mfmcintyre
Ай бұрын
Brian demonstrates an excellent understanding of market trends, making well informed decisions that leads to consistent profit
Hey sir, I am your subscriber I watch your videos daily and follow you, mam I noticed one thing you upload videos daily but don't do video seo and don't give proper title description and video tag channel tag. If you do not do video SEO for uploading videos, then your video will not get good views and will not be subscribed. I would recommend you to definitely SEO your videos,