In this episode of "Talking Real Money," Don and Tom discuss investment risk using "volatility scores" to compare investments. They break down how the ARK Innovation ETF's higher returns come with extreme volatility and steeper losses compared to the Vanguard Total World Stock Index.
They answer listener questions, suggesting a fee-only fiduciary advisor to someone with a broker-built portfolio of individual stocks and annuities. They also recommend a retirement plan update for a long-time follower moving from saving to spending phase.
Throughout the show, Don and Tom emphasize understanding investment volatility, diversification, and portfolio rebalancing with their trademark mix of financial know-how and friendly banter.
[0:04] Intro to Financial Freedom
[1:55] Don's Vision Pro Experience
[3:03] Understanding Risk as Volatility
[5:35] Types of Investment Risk
[7:18] Portfolio Drawdown Concerns
[9:48] ARK ETF's Extreme Volatility
[13:22] Index Fund Rebalancing
[14:13] VT vs ARKK Performance Comparison
[16:53] Listener Questions Begin
[24:51] Finding a Fiduciary Advisor
[31:16] Transitioning to Retirement
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