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Street Talk Advisors CEO Lance Roberts on how to spring clean and protect your finances and boost your retirement.
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Look alive everybody in the face of rising inflation my next guest says it is imperative.
To take a look at all your investments and make sure that they aren't all in one basket this is -- more complicated though.
That just I'll make sure you diversify he's going to give you specifics he is Lance Roberts.
The CEO street top advisors she's joining us so happy about this at -- Fox Business exclusive from Houston with five steps to bullet proof your assets and and that's I I feel very passionately.
About helping people.
Work with their money and make sure they have some when they retire and let's get right to it.
First off we've got -- everybody get to pens or pencils your -- whatever your Google document open ready let's go.
You see it -- but at the 30000 foot level and what do you see looking forward when it comes to people's finances.
Well look -- this is all and I absolutely agree with you -- -- you know everything we focus on is helping people get to that retirement goal unfortunately.
I'm to meet people focus too short term they're they're looking at it from one day to the next one week to the next and you know what news headline is dominating it will be missed the bigger picture here.
And -- combat is doing some basic financial long term planning.
To get people's money -- actually work for them.
So the first thing we have to do before we do anything is -- to realize that the last thirty years of falling interest rates and falling inflation which has been a huge boon to the stock market.
May very well be behind this is model there's not a lot of downside left in terms of inflation interest rates here so.
Found the real with the reality here is is that inflation interest rates may be a problem or -- headwind going forward and so we need to readjust the way we think about money.
You know we're showing treasuries right now in the wake of the number this morning and again I'm gonna reiterate what you just said it is of course just one single number.
Treasury yields plummet so let's keep that in mind that -- not make -- a ton of money if you happen treasuries but let's get to the actual list in the first thing on your list is -- it seems simple people heard it before.
They don't do it make an emergency fund.
Tell me how to formulated it should be how many months of a salary.
Found it really depends a lot of it depends on how -- -- boy you are and it and reality.
-- generally three months for most people if you have a fairly decent skill you're an autumn we can't make sure.
An accountant you -- don't have a lot of down time out of a job if you have a skill set.
You're pretty feasible it pretty easily able to find other jobs of three months -- cover that if you're more of a specialist type area I would recommend six months worth of salary the reason for this is is that once you start investing.
You know when the refrigerator goes out they know you have to pay your property taxes you don't want to sell you know assets that you have in order to pay daily living costs.
OK and then it comes to actually saving for retirement and -- to invest how much -- right.
Well you need you need something to start with the you know you're taught my Easter eggs earlier you've got to have an egg to start with the putting your basket so.
You know -- a good starting numbers generally save up about 20000 dollars before you start trying to investing a lot of people try to buy a mutual -- or a stock.
And generally that will not work out well because you need to start with the inability to diversify your allocation to start -- The step three allocation of stocks vs corporate bonds you say you should have a big chunk in stock 60% forty in corporate bonds you've got two names Family Dollar bonds.
And American partner -- not the stock but of course the high yield bonds what do they yielding right now.
About 6% on average and the reason that I -- we were discussing this this morning was because simply that.
In this environment well you have to look at where people are spending money wal -- even struggling with retail cells which is telling you the consumers really an -- frugality here they're moving down to Family Dollar store.
So when we're looking at fixed income for the portfolio and very quickly why don't we on fixing come at a portfolio we saw today.
When stocks don't do well bonds do better so it helps insulate your portfolio against these big swings.
And keeps you from making -- mostly bad mistakes of selling in a panic because he's smooth out the bombs.
So bit it bit you wanna invest in bonds were people are putting money to -- these obligations they have to pay you back and they need revenue to pay back.
With -- step four is to invest in hard assets everything from oil to gas to gold just to at least have that and then you say.
Real estate at least own something if you have a house at least you own it put it down payment on it and these are all good pieces of advice of course it takes a job to have the money to start doing this but -- is it is good information thank you so much -- -- thank you.
With -- so much -- CEO of street talk advisors will put all of these steps and more on our FaceBook page FaceBook dot com slash.
