Today’s Mission:

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)

Strategy Points:

[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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More Intel:

The host: J’Neanne TheusContact – Call: (443) 718-6310

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