Khun Ruth, Bob And, Nelson discussed on No Payne, No Gain


And every week any great question a question we love. We answered right here on the show and help with with questions today we have our man in the studio, Mr Dan Irving. Mr Damn good to have you today, My man. Hello, Ryan and Bob. We got some great questions in the mailbag today. Our first question is from Ruth in Roslyn, New York, Ruth says Bob. The market cap of the NASDAQ has now topped the entire GDP of the European Union and the sixth biggest stocks are now valued at $6.9 trillion. Which is more than double the size of Germany's economy. It seems to me we're in a huge bubble in stocks. Is it time to go to cash? Well, you know what? That's a great question, Ruth because when you look at the NASDAQ, which is only one index right, you have the Dow Jones Industrial Average. The Russell 3000 and 3000. Yeah. The Dow Jones industrial average. It's not the entire market. So yeah, that the five stocks in the NASDAQ that are the best performers over the last 10 years certainly do look a little pricey. It should never be a reason. You know why you want to get rid of all your investments because five stocks are doing well, Airai. How many stocks Khun Ruth invest in if she just looks away from the NASDAQ. I don't know, maybe 10,000 globally, Bob, But I think the other thing to mention here too. It's really important if you buy something like the S and P 500. Well, that sounds like a lot of stocks. The problem is Those big tech stocks account for if you count Netflix, and they're like 25% of the entire index, So you think you're buying diversification, But you're really not your only buying a handful of stocks because it's what we call capitalization waited, and that's why it's so important right now about to diversify your money globally. You know, I I don't know about you. But if I'm a gambling type of person, and I'm going to try and bet on having the best stock in my portfolio over the next 10 years Really? I'm just going to buy 100 stocks in the NASDAQ. I'm going to buy the 10,000 publicly traded companies that I can buy around the world. I think I have a better chance of having all the winners. If I do it that way, versus gambling on a handful of stocks. Thank you. Ruth for writing in our next question is from Nelson in Red Bank, New Jersey, Nelson says Ryan Some people love it, But I can't stand working from home and I'd like to go ahead and retire. I'll be 62 in a few months so I could start Social Security. Then would I be safe to retire at that point? Well, Nelson, maybe maybe not this So without knowing all your information. Obviously, I can't really tell you for sure, but I think this is what speaks to what we talked about. Earlier in the show today, Bob And that's let's run the numbers. It's time to sit down and start to model out what you're going to need to live on inflation, taxation and any big expenses. You may have come up the next couple of years and then we can discern while is it better? Take so security now. Is it better? Take it later. And what could you spend comfortably so that you don't run out of money, right? Nelson? I think he's on to something here. I mean, we've had so many calls so many e mails from a lot of you who don't like working from home. We've had two or three teachers that retired this year because they don't want to teach on zoom again next year, but fortunately they started doing there planning 10 years ago, 15 years ago. So you know, I don't know what's going to come in the future to make you wantto maybe retire from that job or leave early. You've got to do that planning now. Don'tyou write. You do it. It's not too late. Look, if you're at that point right now, where you're thinking about to leave my job you haven't done planning. Well, it's time to start. You know, there's no better time than the present to get that going. And I'd argue right now is better than ever. We talked about this before. Because the pandemic your spending's probably down a little bit, so it's a little less painful to actually run that budget and see what you're spending. There's nothing more therapeutic than getting a clear picture of what you're going to need to spend over the next couple years. Then you can start to see the future with more clarity. And that just means less dress and more financial security. Please don't tell me you're recommending to our listeners right now that while they're in quarantine They diet and they work on their budget. I mean, come on. I can't help it. Baba Massa kissed. Well, Let me ask you a question right on a scale of 1 to 10 in terms of being financially organize. What would you give Ruth and Nelson roots really thinking about big things like GDP market capitalization, thinks she's halfway there Now. She just needs a game plan to capitalize on the fact that we was 10,000 stocks in the world to invest in. I give Ruth a hard five and Nelson man. Oh, man, Let's get that plan in place. I'll give you five least You're thinking about it. A cz. Well, hard fives across the board, Bob. Let's get them to attend. Okay, So let me ask all of you a question while my son rise in such a benevolent mood in terms of being financially organized on a scale of 1 to 10. What do you think Ryan would give you right now? Would he give you a five? How about your spouse with your spouse? Give you a 10? Would you give yourself a 10? And if not, why not?.

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