Ep. 420: “Pete, Am I Investing Too Aggressively?”

We want to answer your questions about money. Email us and you may hear yours on the air: askpete@petetheplanner.com

This week on the Pete the Planner Show, Pete is back from vacation and Dame’s AquaDunns are expected to do quite well in the swim meet! 

No time to listen?  Here’s a preview of what happened and when:

Show Notes:

MAILBAG QUESTION 1: ARE WE BEING SELFISH? [3:23]

  • “My daughter and her husband keep bringing up the topic of an early inheritance. My husband and I do plan on leaving our something for children, but we don’t feel compelled to give either child money now. I already view their financial prudence to be lacking, but she keeps bringing it up. Are we being selfish?

    • PETE: This is called a living inheritance
    • One generation accumulates wealth and instead of passing that on when they pass away, they gift the funds to them now.
    • DAMIAN: Sure, there may be some tax reasons for some people to start giving their money ahead of time. But for the majority, this feels a bit tasteless.

 

MAILBAG QUESTION 2:  [14:34]

  • “My wife and I have about $2.5M in the stock market made up of IRAs and joint accounts. I’ve always bought and sold stock on my own. Our portfolio is made up of index funds and conservative dividend-paying stocks. All dividends are reinvested. We now are in our 70s. I have defined pension plans that exceed our living expenses and own our home with no credit card bills. Our medical bills are simple. I turn down our last company’s medical coverage and for this, they supplement me an additional sum each year. We have a son and 2 grandchildren we’d like to leave our estate to. We have prepaid college plans paid for both grandchildren. I see myself investing for the long-term as I don’t require any money from the portfolio. Is this the right strategy? Should I be investing in a less aggressive manner? My portfolio is mostly 30% index funds, 24% Microsoft, and the rest all American companies – mostly dividend stalwarts. Is this too aggressive?”

    • DAMIAN: I appreciate Mike’s honesty. With his allocation, I’d expect this turn out. Is it aggressive? Not so sure.
    • PETE: I would say his allocation itself is too aggressive, but this is an inheritance play now.
    • DAMIAN: I’d encourage him to start setting goals for what he wants to do with it. Some use. Some defined purpose.

There’s more segments to check out in the full show! There might be something you can think about.  — click PLAY below.


— HEY! Before you go, give your personal finances a facelift. Peep our personal guidance platform: Hey Money.

 

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