Too Much of a Good Thing?
Big Picture Retirement®
Devin Carroll
4.7 • 546 Ratings
🗓️ 28 May 2024
⏱️ 23 minutes
🧾️ Download transcript
Summary
Lots of investors use the S&P 500 index as a key part of their investment plan, thinking it spreads their money out well among America's biggest companies. But in this episode, we're going to question that idea by looking at the risks of having too much money in just a few of the index's top companies. Even though the index includes 500 stocks, a big chunk of its value comes from just a few big names like Microsoft. We'll explore how this uneven distribution can bring more risk than you might expect, and talk about what happens when too much of your investment is tied up in just a few places
If you're thinking "I love the Big Picture Retirement podcast" please consider rating and reviewing this show! This helps us support more people -- just like you -- move toward a confident retirement. Just scroll down to the "ratings and reviews" section, tap to rate with five stars, and select "Write a Review." Then be sure to let us know what you loved most about the episode!
Also, if you haven't done so already, follow the podcast. We're adding new content every week and if you're not following there's a good chance you'll miss out. Follow now!
Want to ask Devin or John your question? Just visit https://www.bigpictureretirement.com/ and look for the tab on the right side that says "Send A Voicemail."
Although this show does not provide specific tax, legal, or financial advice, you can engage Devin or John through their individual firms.
Contact Devin's team at https://carrolladvisory.co/podcast1
Contact John's team at https://www.rossandshoalmire.com/
Transcript
Click on a timestamp to play from that location
| 0:00.0 | The Big Picture Retirement Show does not provide tax, legal, or financial advice. |
| 0:04.3 | Listeners are encouraged to seek out their own advisors in these areas. |
| 0:10.8 | Hey, everyone, welcome to the Big Picture Retirement Show. |
| 0:13.8 | I'm your host, Devin, joined by John Rolts. |
| 0:17.1 | Howdy. |
| 0:25.3 | Yeah. Howdy. John, we've had an episode before where we talk about nothing lasts forever. |
| 0:29.7 | And I think that was the one where you talked about the role of perpetuities. |
| 0:34.3 | Yes. |
| 0:34.9 | So this is also another episode where we talk about nothing lasts forever, except in this case, we're talking about investment performance. Yes. So this is also another episode where we talk about nothing lasts forever, |
| 0:38.1 | except in this case, we're talking about investment performance. You know, this is likely an |
| 0:44.1 | episode that will need to have a sister episode added to that, where we actually talk about |
| 0:50.4 | the outlook going forward for investment performance. But today, I want to keep this, |
| 0:55.5 | I want to keep this pretty narrow because I think in a lot of 401ks, a lot of individuals, |
| 1:03.0 | IRAs, there's a big risk there that they didn't really know about, that they didn't know was there. |
| 1:09.9 | And that's an extreme amount |
| 1:12.6 | and a growing amount of concentration among just a very few companies. Well, and, you know, I'm |
| 1:20.1 | going to say, uh, that's not me because I have, I have invested in, you know what, I've just got my stuff in some index funds. And that's |
| 1:31.7 | diversified. I mean, that's, has to be. Right. It's, it's the, it's the S&P 500. Yes. There's 500. |
| 1:39.1 | It sure says that in the name. It says it in the name, right? So I'm good. I don't have, |
| 1:43.3 | this. I'm not, I'm not the guy you're talking about, right? No, it's, it's, it's these other people that have |
| 1:48.5 | these actively managed fines that are actually just mirroring the index. All right, so let's go, |
| 1:54.2 | let's go back. The, the threat that I think is, that is growing is specifically with the S&P 500 fund. |
... |
Please login to see the full transcript.
Disclaimer: The podcast and artwork embedded on this page are from Devin Carroll, and are the property of its owner and not affiliated with or endorsed by Tapesearch.
Generated transcripts are the property of Devin Carroll and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.
Copyright © Tapesearch 2026.