Ep 26: Planning for Things You Can’t Predict

There are some things in life you can’t predict, but you can try to plan for them. For example, when is the next market crash going to happen? We don’t know, but you can prepare for it. On today's episode, we'll discuss some common things we can't predict but how we can still make a plan for them anyway.
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Show Notes For This Episode

On this episode of Saving the American Dream, we’re talking about planning for the financial issues you can’t predict.

When is the next market crash going to happen?

We have no idea when this will happen, but you don’t need to know to construct a financial plan. You need systems and processes in place that are repeatable and will allow you to have financial success.

You need to own stocks in a way that’s consistent with your overall risk tolerance. Risk in the world of investments is measured by standard deviation. So we can look at a basket of asset classes that you own and we can know what your upside and downside are in any given year.

To know your risk tolerance, we have to figure out the amount of downside that you’re comfortable with to see how aggressive you should be.

On today’s show, we’ll also share how to prepare for:

  • Health care
  • Taxes
  • Life expectancy

Listen to the full podcast or use the timestamps below to jump to a specific section.

Navigating the Show

[1:10 ]Rams going to the Superbowl!

[3:35] Headlines: IRS, New Business, Taco Bell

[9:40] Market crash

[14:58] Health care

[17:17] Taxes

[20:23] Life expectancy

 

You need systems and processes in place that are repeatable that are going to allow you to have financial success.

– Michael Schulte

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