COVERITLIVE.COM

10:29

Angela of GOLO - Hello everyone. Russell Emrath and David Hellinger will join us shortly.

10:35

[Comment From Janet Harrison]
What is the format for today's discussion. Is there video? Do we just type questions and you type answers? How does it work?

10:36

Angela of GOLO - You just ask a question and Russ or David, or both will answer.

10:38

[Comment From Janet Harrison]
If someone has money to invest what do you recommend for short term gain and for long term gain?

10:41

[Comment From Teresa]
Shound we keep contributing to our 401K even if the money is being lost or should we stop the contrabutions for now and invest it somewhere else? Where else can we invest?

10:41

[Comment From David Hellinger]
Short term money (one to three years) should not really be "invested". There are some short term assets like CDs or Tres Bonds that are fixed. Beyond that your adding unneeded and undesired risk.

10:43

[Comment From Russ Emrath]
Long term, typically meaning greater than 7 years, should be positioned in a diversified portfolio mixing stocks and bonds. Generally, the longer your timeline, the greater your portfolio should be weighted in stocks.

10:44

[Comment From Janet Harrison]
What sectors do you find to be the most recession proof?

10:45

Russ Emrath - Of course staying in the markets to achieve long term goals comes with a need to stomach ups and downs. It would almost be better to avoid looking at daily market quotations and only review your portfolio to rebalance once a quarter.

10:45

David Hellinger - Generally Yes. Provided you can keep it for the long run 401k gives you advantage of tax deferral no matter what you invest in. If you have a long time before you are using your 401k, then buying small bits of the market while prices are down is a good idea too.

10:46

[Comment From Amanda]
I graduated 6 months ago from college and now school bills are rolling in along with rent, utilities, credit card bills etc. And between helping my parents with their bills (so they don't foreclose on their house) and trying to find a good paying job, I am in desperate need of financial help! Is there a way to post pone school loans longer then the allotted 6 month period?

10:47

Russ Emrath - A pre-requisite for smart investing is acknowledging that know one knows the future. The more aware you are of that limitation the better you'll be at sticking to an investment policy that compels you to have exposure to many classes of assets.

10:48

Russ Emrath - No one is recession proof, but generally utilities are less volatile.

10:49

David Hellinger - Amanda, Not that I am aware of. You can amortize your payments over a longer period. That can lower your month require. However once you have stabilized your cash flow, pay off the loan at a more rapid rate.

10:49

Angela of GOLO - David or Russ...I'm wondering how soon a person should consider going into their retirmement accounts after they've been laid off. Some people may try to wait while others have no choice. Thoughts?

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