There’s a buzzword in the financial world called “safe money”, but it has many definitions . Everyone wants their money to be safe to a certain extent, but you need to balance risk and safety in your portfolio. There’s also a lot of misinformation out there, so J’Neanne shares everything you need to know about safe money.
(Click the featured times below to jump forward in the episode)
1:41 – Defining Safe Money
- The most common use of the term has to do with annuities.
- Cash can be safe money, but it won’t grow and will be affected by inflation.
- Usually, safe money is money you want to keep, regardless of how it’s invested or saved away.
- Ask yourself, what is the purpose of this money?
4:19 – Risk Versus Safety
- Most people don’t have an accurate idea of how much safety or risk they have in their account.
- J’Neanne gives a client example of a smart person who didn’t know what was in their portfolio.
- Don’t take risks without being compensated. There can be safety within your strategy.
5:46 – Misinformation About Safety
- J’Neanne says listening to the commentariat (a group of powerful and influential people) and Wall Street can cause misinformation.
- You don’t want a sales pitch but an understanding.
- There’s no such thing as “no risk” since risk is everywhere.
8:11 – You Need Some Safe Money
- There are a few different philosophies: active management or passive structured investing.
- J’Neanne shares an example of funds she looked into when doing an analysis of a portfolio.
- People want to understand that their money is safe where it is invested.
12:15 – Getting To Know You: Style
- What styles make J’Neanne laugh now? She shares a few things straight out of the ‘70s that she’s glad she left behind.
15:15 – Mailbag: Market Crash
- Murray says the market has to crash soon, right?
- J’Neanne says yes and no, it’s a matter of what kind of crash you’re talking about.
- The market is diverse right now, so there may be a down dip but not a real big crash.
The Grand Plan:
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The host: J’Neanne Theus – Contact – Call: (443) 718-6310
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