Announcer (00:02):I love this podcast because it crushes your dreams of getting rich quick. They actually got me into reading stats for anything you're tuned in to the Investing for Beginners podcast led by Andrew Sather and Dave Ahern. To provide step-by-step premium investing guidance for beginners. Your path to financial freedom starts now.Andrew (00:32):Welcome to the Investing for Beginners podcast. This is episode 168 tonight. We're going to talk about asset allocation. We still do have Dave with us here tonight. But I'm going to be asking him some questions on asset allocation. It's something he's been working on behind the scenes for several months. And so it's a very important topic. We get questions related to this all the time. I think a lot of times, investors don't know that they need to learn about asset allocation. Embedded in their question might be thoughts about asset allocation. So, Dave, first we'll start. Let's say somebody is either just gone inheritance as an example, or maybe saved for many years, and you know, we're talking about life savings, and they're getting close to retirement. So in either situation, there might be different ways of looking at the portfolio. So when somebody is looking at a situation like that, where they have a significant sum and either, you know, the timeline's kind of shrunk or the sum they have now needed to last them for the rest of their life.Andrew (01:44):Let's say, what kind of things are, give me an example of something different from somebody else who's maybe putting a portion away every month and what, why that's, why that's different in that case?Dave (02:00):Well, it depends on the timeline, and that's something that you brought up. It comes down to the timeline and where you are and what your goal is. So for example, let's say that somebody comes into an inheritance and they have quite a bit of money, but maybe they're 10, 15 years away from retirement. They want to use that money to last until they go into the great gig in the sky, or however, you want to put that that has a big impact on what it is and how you set up your portfolio. And some of the things that I've been learning about the asset allocation are seemed intuitive and seem natural. But when we sit down and have to put numbers to situations, it becomes a little more difficult. And one of the things that you have to think about is, for example, let's say that you're ten years away from retiringDave (03:00):And you got a big chunk of money, and you want to do something with it. Well, there are several things you have to think about. The first thing you have to think about is how much risk can I tolerate? So, in other words,
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