Finucanes on ASLEEP AT THE WHEEL

di Freddenver: Finance

Ted and Chance Finucane are calling out a massive flaw in how eighty-year-olds manage their money, pointing out that ninety percent of their assets sit in stocks. They argue this number needs to drop because it creates a social headache for the next generation when kids realize their parents' wealth has just evaporated down to fifty or sixty percent of what it used to be. The problem is everyone is still fully invested without really thinking through the danger. Their approach skips buying ten to twenty-year government bonds entirely since they don't trust the US government enough to loan money for that long. Instead they have stretched their timeline from an average of one year up to two or three years, with plans to push closer to four. This shift happens because you can't predict what will happen in ten years, meaning interest rates will likely stay high for decades.