Ep. 1998: The S&P 500 or the Whole World?

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 Questions? Comments? Click the microphone at TalkingRealMoney.com. Questions? Comments? Click!