Various types of investments

      Arielle is feeling overwhelmed by the conflicting advice regarding the best investments to protect against inflation and a potential recession. What is she overlooking?

      Dave is intrigued by private investments after catching a recent First Friday episode. What do they entail, and should he incorporate them into his portfolio?

      Abbey is thrilled about the salary increase she secured for her first post-school job. However, she's concerned about the liability risks associated with her new role. How can she safeguard herself?

      In today’s episode, former financial planner Joe Saul-Sehy and I address these three inquiries.

      Enjoy!

      P.S. Have a question? Leave it here.

      _______

      Arielle asks (1:47): If gold and other assets resistant to inflation are currently in high demand, why are some experts advising investors to avoid them?

      I recall you mentioning in recent episodes that, due to the ongoing inflationary situation and the risk of a recession, numerous investors are considering assets such as gold, art, and real estate, which are perceived as more stable or inflation-resistant.

      At the same time, you have also cautioned against opportunistic advisors or companies promoting these types of assets, particularly to novice investors. This has left me perplexed.

      If experienced investors are moving in that direction, yet there are also untrustworthy individuals advocating the same assets, how should someone new like me interpret this?

      Could you clarify how to approach gold, bonds, and other “inflation-proof” assets, particularly for someone just beginning to invest in the stock market?

      Dave asks (36:17): What are private investments, and why should we be paying attention to them?

      I was listening to the First Friday episode where Paula discussed accredited investors and investing in private markets, which piqued my interest, but I realized I’m not very knowledgeable about what that implies.

      What types of private investments exist? How do they relate to the larger discussion we’ve been having around concepts like the efficient frontier, real estate, or mutual funds?

      Could you explain what these private investments look like, and in what scenarios, if any, they might be suitable for someone like myself?

      Abbey asks (1:05:42): What advice would you offer to someone who is just starting out as a 1099 worker?

      Some time ago, I called in with a question about whether to invest money set aside for tuition, assuming that student loans would always be a fallback. Well, let’s say things didn’t unfold as I anticipated.

      Interest rates increased, markets fell—and I gained some important insights throughout the process. (Including one that validates Joe was correct.)

      Fast-forward to now: I’ve graduated, secured a new job, and, following your advice, successfully negotiated a much better contract—with a higher hourly rate, a more flexible schedule, and a significantly larger signing bonus.

      The new role is 1099, and I have a few questions as I navigate this change. I’m 26 with $115,000 in student loans at rates between five and nine percent. I also have $70,000 in a Roth, $50,000 in a 403(b), and $10,000 in an HSA.

      Do I need to hire an accountant and/or tax strategist, and how should I find one? I’m also entering the field of nurse anesthesia and feel a bit anxious regarding liability as a recent graduate. What measures should I take to protect myself financially and legally?

      Resources Mentioned:

      Interview with Nick Maggiulli

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