Should I Have Private Equity in My Portfolio?

In this episode, we tackle the complexities surrounding private equity in retirement portfolios. Join Roger as he navigates a listener's inquiry about the necessity and implications of investing in private equity, especially in light of recent discussions and literature on the topic. With insights from investment expert Peter Lazaroff, we explore the pros and cons, the importance of having a solid retirement plan, and whether private equity is truly a beneficial addition to your portfolio. Tune in to gain clarity and confidence in your retirement investment strategy!

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• (00:00) Complexity is your enemy. Any fool can make something complicated. It is hard to keep things simple.-Richard Branson
• (00:38) Today’s episode is about private equity.
• (01:33) Roger reads an email from listener Dave with a question about investing in private equity.
• (02:28) Roger says that this episode features his opinion and judgment on private equity.
• (06:45) Don't think about private equity until you have a vision for what you want your retirement to look like. 
• (10:20) Consider the second order consequence of making an investment.
• (12:00) Unless you are significantly overfunded and have an interest in private equity- Roger thinks private equity is unnecessary for creating a great life.

INTERVIEW WITH PETER LAZAROFF

• (14:10) Introduction of Peter Lazaroff, author of Making Money Simple
• (16:39) What is private equity?
• (17:38) Who is traditionally invested in private equity?
• (26:12) When markets are under stress, private equity correlations go a lot higher.
• (27:49) What is the normal fee structure for investing in private equity?
• (31:15) What you're seeing more often these days are semi-liquid funds that offer liquidity windows.
• (34:30) There is no evidence to suggest that fewer companies going public is causing an issue.
• (40:15) We can’t predict when a bad decade of returns is going to come.
• (41:35) Peter: I am more concerned about implementing a bad idea than missing out on a good one.

SMART SPRINT

• (42:39) In the next seven days, take a moment and remind yourself of the purpose of retirement planning which is to create a great life.

BONUS

• (43:20) Roger reads an excerpt from his grandfather's WWII journal.

REFERENCES

• Tony Robbins
• Peter Lazaroff
• Wall Street Journal
• Book- Making Money Simple
• Retirement Answer Man
• The Retirement Answer Man Free Worksheet Library
• Sign up for 6-Shot Saturday!

Show notes created by https://headliner.app

What is Retirement Answer Man?

A top retirement podcast. Roger Whitney, CFP®, CIMA®, CPWA®, RMA, guides you on how to actually do retirement well financially and personally. This retirement podcast isn't afraid to talk about the softer side of retirement. It will teach you how to retire with confidence. Two-time PLUTUS winner for best retirement podcast / blog and the 2019 winner for best financial planner blog. This retirement podcast covers how to create a paycheck, medicare, healthcare, Social Security, tax management in retirement as well as retirement travel and other non-financial issues you'll need to address to rock retirement. Retirement isn’t an age OR a financial number. It’s finding that balance between living well today and feeling confident about your retirement. It’s about gaining more freedom to pursue the life you want. Join the rock retirement community at www.rogerwhitney.com