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Ep. 1998: The S&P 500 or the Whole World?
Description
Don and Tom compare the S&P 500 with total-market and globally diversified investing, explain the danger of home bias, and show why owning more of the world can reduce concentration risk. Then they answer questions about Roth conversions, bond-fund losses, CD ladders, and matching a risk score to a stock-bond allocation.
00:00 Oktoberfest musical intro
01:23 S&P 500 versus the whole market
04:18 Why global diversification matters
09:07 Home bias around the world
13:11 A lost decade for the S&P 500
15:46 Three questions about diversification
16:59 Roth-conversion strategy
23:31 Bond funds versus individual bonds
27:37 CD ladders and reinvestment risk
29:55 Risk scores and stock-bond allocation
32:53 Wrap-up and disclosures
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