Ask Money Talk: $100,000 plan
As an offshoot of our weekly podcasts – and to encourage your participation – we occasionally feature responses to listeners’ questions.
Much of the success in long-term investment planning involves maintaining balance. That’s the approach Bob Landaas advises when asked what to do with $100,000. For starters, he’d about evenly split the investment between stocks and bonds. Then, every year, he would re-balance.
“It’s the one thing that most people aren’t real good at,” Bob says. “The reason is if the stock market’s on fire, people mostly want stock. And if the stock market’s getting hammered, people don’t want stock. So, you have to stick to your guns.”
In response to a Money Talk podcast question about what to do with $100,000, Bob offers a quick lesson in building an investment portfolio balanced for long-term growth. (Please click the audio player above to hear Bob’s full answer.)
Click here to learn more about Harry Markowitz and the efficient frontier of investing.
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initially posted Dec. 10, 2012