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How often do you come out on top if you try to beat the odds? Most active-fund managers fail to beat the market. Joe Anderson, CFP\xae and Big Al Clopine CPA share a more reliable way to invest for your future in YMYW podcast episode 50. Original publish date July 23, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed.\xa0

00:00 - Intro

04:12 - \u201cAs the market declines, we are buying the same great companies at a discount, so now is the time to invest.\u201d

06:24 - \u201cYou want to make sure you\u2019re diversified.\u201d

07:03 - \u201cSmall companies and value companies tend to outperform large and growth companies over the long-term. But we haven\u2019t seen that the last few years. Does that mean we abandon that strategy? No, it still works if you give it enough time \u2013 that\u2019s where patience is really important.\u201d

11:01 - \u201cWe have all-time lows for the 10-year treasury\u2026\u201d

12:29 - \u201cIf you\u2019re a U.S. investor and getting 60% of your portfolio going to return 6% and 40% going to return 1%, you\u2019re talking about a 4% return which is half of the nominal return that the typical 60/40 portfolio has earned over the last 90 years. That\u2019s a real problem for many investors who make the mistake of relying on historical returns; they\u2019re likely to end up alive with no money.\u201d

13:20 - \u201cClearly there are problems in the global economy. The credit markets are telling us a different story than the stock markets. They think that economic growth is very weak and likely to continue to be very weak. The stock market, on the other hand \u2013 at least in the U.S. where stock valuations are high \u2013 one assumes then that the market thinks growth will be somewhat reasonable.\u201d

17:27 - \u201cBonds are not for return. They are to dampen the risk of the overall portfolio to an acceptable level\u2026\u201d

20:00 - \u201cWhatever your political views are, I think it\u2019s important that you hear this message. What the academic research shows is the following: when the party you favor is in power, you earn higher returns than the people in the opposing party.\u201d

22:25 - \u201cIt\u2019s important to not let your political biases or your political views influence your [investing] decisions.\u201d

29:47 - \u201cREITs (Real Estate Investment Trust), to me are the riskiest investments \u2013 or at least among them right now \u2013 as you can get a higher expected return by investing in a 10-year CD with a hell of a lot less risk.\u201d

32:50 - \u201cGet realistic on your budget; take a look at your bank statement\u2026 try to figure out where that money is going, what kind of retirement lifestyle you want and then start figuring out a savings plan and start early.\u201d