How to help mitigate investing risks in today’s economy

Everyday Wealth

Jean Chatzky

Investing, Business, Education

2 • 935 Ratings

🗓️ 22 August 2022

⏱️ 4 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Jean and Edelman Financial Engines wealth planner Andy Smith break down the two different types of investors, and what risks may or may not be worth taking in light of the recent market rebound and continued volatility.

See omnystudio.com/listener for privacy information.

Transcript

Click on a timestamp to play from that location

0:00.0	This is everyday wealth with award-winning journalist Soledad O'Brien and personal finance expert
0:11.0	Jean Chatsky.
0:12.0	I think this is a time that you can get into that mindset of wanting to ride the potential big waves of certain investments,
0:25.0	certain stocks, maybe certain commodities
0:27.7	to a big quick return.
0:30.5	And you might even be thinking about futures trading or short selling or buying on margin,
0:38.0	anything to make a quick buck and perhaps recoup some of the money that you feel like you've lost earlier in the year,
0:44.7	especially if you made the mistake of selling when the markets were at their lowest.
0:50.4	I gotta imagine, Andy, when somebody walks into your office wanting to jump into these scenarios
0:56.3	it's your job to pump the brakes and there are big conversations to be had. How do you course correct when people bring you ideas like this?
1:06.8	The first thing that I do is I usually try to ask them what bonkers newsletter that they've been
1:12.2	pitched or some spam email that they've read, some TV
1:16.4	commercial, some YouTube.
1:18.4	They've received this must act advice because that's where we usually see the conversations headed.
1:25.0	It comes down to what type of investor are you.
1:28.0	There's two types of market participants.
1:30.0	There are the long-term investors who understand the ups and downs in the market. There are market cycles. They know how different asset classes perform. They're willing to wait it out. And then you got your speculators. People who view investing as this game to beat,
1:44.8	and they are trying to make the most amount of money in the least amount of time possible.
1:49.6	The real difference between those two groups comes down to risk.
1:53.4	Everything that I do, you know, when we build these plans, when we look at the goals-based
1:58.4	approach that we have with clients, we're trying to find the least amount of risk necessary for you to achieve your goals.
2:06.3	You have to remember that investments are just a tool that can help you move your plan forward. They're not always the end all be all that you want to obsess over and track and look 8,000 times on your phone,
	...

Transcript will be available on the free plan in -944 days. Upgrade to see the full transcript now.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Jean Chatzky, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Jean Chatzky and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.