Q&A: The Efficient Frontier Was Perfect Until HR Got Involved

Afford Anything | Make Smart Money Choices

Paula Pant | Cumulus Podcast Network

Investing, Entrepreneurship, Business

4.7 • 3.6K Ratings

🗓️ 28 January 2025

⏱️ 61 minutes

🔗️ Recording | iTunes | RSS

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Summary

#577: Kelsey is excited about investing along the efficient frontier, but it feels impossible with the lack of fund options in her employer-sponsored 401k. What’s the best way to deal with this problem? Molly discovered that her rollover from a 401k to a traditional IRA hadn’t been invested in mutual funds and was still in a money market fund. Manually calculating her net worth helped her identify this oversight, and she shares her experience with us. Former financial planner Joe Saul-Sehy and I tackle this in today’s episode. Enjoy! P.S. Got a question? Leave it at https://affordanything.com/voicemail For more information, visit the show notes at https://affordanything.com/episode577 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0	Joe, how many funds are in your portfolio?
0:02.2	I have eight.
0:03.9	Eight fund portfolio.
0:05.7	That's it.
0:07.0	But, you know, that's the question that's on everyone's mind.
0:10.0	How many funds should be in a portfolio?
0:12.4	Should it be a two-fund portfolio, four-fund, eight-fund, ten-fund?
0:16.5	Is there an optimal number of funds?
0:19.0	Oh, we can answer that.
0:20.9	We sure can, because that is a question that one of our callers has.
0:25.5	And she also has the question, really the bigger question behind that, what should she do if she has a 401k with a crappy fund selection?
0:33.4	Interesting.
0:34.6	Right.
0:35.5	That's a frustrating and limiting thing when you're dealing with a company 401k.
0:39.3	100%.
0:40.3	The efficient frontier shows you that we should go into X, Y, Z, fun, but I don't have that
0:45.3	fun.
0:46.3	What do I do now?
0:47.3	Exactly.
0:48.3	We're going to answer a question from a caller who has that dilemma.
0:51.3	And within that answer, we're going to be deep diving into
0:54.4	how to triple what your portfolio might make over the span of your life.
	...

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