A few years ago, I got a call from a woman who said she had lost nearly $150,000 in her investment portfolio after losing it in a market crash.
After several months of looking for a new asset, I decided to try her luck.
She was a bit reluctant to give her real name, but I didn’t want her to worry that I was scaring her into buying into an illiquid, undervalued and speculative investment.
So, I called her up, and she said she was thinking of getting a new investment, but was concerned about the market volatility that would come with it.
After we talked, she asked if I could do an interview.
I was impressed with her commitment to a financial literacy program at her university, and we decided to speak about retirement and asset allocation.
So we started by asking her how much she was planning on saving for retirement, and how she had come up with her asset allocation plan.
She told me that she was in her mid-30s, but that she had accumulated a total of $1.6 million in her portfolio.
She said that she planned to save $100,000 per year for the rest of her life, but had only $200,000 saved up.
She also said that her goal was to have an asset allocation of “10 per cent” of her assets, which means that her portfolio would have 10 per cent of her portfolio in the form of a “cash” portfolio, which would consist of a total net worth of $2.3 million.
She had recently started investing in a portfolio of “low-cost” stocks, which meant that she would only be investing $100 a month in the stocks in which she had a position.
As a result, she was able to save the maximum $300 a month, while also contributing to her retirement nest fund.
I asked her what her investment goals were for the next 20 years.
She replied that she wanted to invest in companies that are expected to have a “great return on investment,” and that she expected her investments to “continue to grow.”
What she didn’t know, though, was that she also had an asset management company that she owned, and it had some of the same strategies I had talked about earlier.
I had just started my own retirement plan in 2015, and I was planning to put all of my money in an IRA, which I thought was the best way to diversify my assets.
But I found out that most companies that were expected to “return on investment” were heavily invested in bonds.
This meant that I would end up paying the fees for the “market-weighted” companies in my portfolio, but not the dividends.
I quickly realized that these companies were very likely going to be heavily diluted in the next 10 years, and that I could lose out on some of those dividends if I didn