How Do You Approach Financial Planning? | personal-finance


Financial planning is a highly personal process, and it looks slightly different for everyone. In this segment of Backstage Pass, recorded on Dec 22Fool contributors Rachel Warren, Danny Vena, and Deidre Woollard respond to a member’s question and share their individual approaches to building a stronger financial future.

10 stocks we like better than Walmart

When our award-winning analyst team has an investing tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisoryou have tripled the market.*

They just revealed what they believe are the have best stocks for investors to buy right now… and Walmart wasn’t one of them! That’s right — they think these 10 stocks are even better buys.

People are also reading…

Stock Advisor returns as of 6/15/21

Rachel Warren: Let’s see another question from Vihaan that just came in. What are different investment accounts to stocks one can hold: traditional brokerage, traditional IRA, Roth IRA, anything else?

Can you please talk to how The Five team are diversified, percent of capital in taxable and non-taxable? Either of you want to jump in on that and then I’ll close out with my thoughts.

Danny Vena: I’ll just say quickly, I don’t have a specific percentage that I put in one account versus another. My personal investing situation changed several years ago. We moved from Colorado to California.

The amount of money that I invested in my taxable account decreased because I needed money to pay my mortgage.

But I still try to keep the same amount of money going into my retirement account because when I retire I don’t want to eat cat food. [laughs] I would say that’s a really personal situation and I don’t think you’re going to find any set percentages that is a one-size-fits-all for all investors.

Warren: Great. What about you Deidre, do you have any thoughts you want to add?

Deidre Woollard: I also don’t want to eat cat food.

Warren: [laughs] I think we can all agree on that one, right?

Woolard: And it is. I’d like to keep a fair amount in my retirement accounts. I also like to keep things like REITs in, they go so nicely in IRAs because all the dividends just sitting in there and growing and that’s a really nice thing.

I think it’s absolutely a personal thing for every investor. I think you’ve got to have your emergency funds and everything like that set up before you start contributing heavily to your retirement funds.

Warren: yeah. And I can say for myself, I do not currently have a traditional retirement fund in place. I’ve been focusing on building my stock portfolio and I also regularly add to my emergency fund, as well as just my investing capital that I can use to continue to boost and grow my portfolio.

As a freelancer, I don’t have a traditional retirement account, that is one I could perhaps open in the future, but for now, that has not been my personal focus. In terms of diversification, I would just say I personally diversify the stocks that I invest in across a range of industries, primarily healthcare and tech as of now and I generally try to invest on equal weighting in my stocks.

But as I’ve mentioned before on the show, I’m a newer investor, and I have not built up to the amount of stocks in my portfolio yet that I want to have. But again, it’s personal and different for everyone for sure. Thank you for that question.

The Motley Fool has a disclosure policy.