Jun 10, 2024
In this episode, Ryan Burklo and Alex Collins discuss the concept of net rate of return and its impact on investment portfolios. They explore the real rate of return, inflation, asset allocation, and the importance of balance sheet allocation. The conversation delves into the significance of understanding and combating inflation to achieve long-term financial goals.
Takeaways
Understanding the real rate of return is crucial for evaluating
the true performance of an investment portfolio.
Inflation erodes the purchasing power of money, making it essential
to combat inflation through strategic asset allocation.
Balance sheet allocation and risk profile play a significant role
in achieving a favorable rate of return.
The composition of the portfolio, including promise-based assets
and market-based assets, impacts the overall risk and return
profile.
The conversation emphasizes the importance of considering the
entire balance sheet and not just individual accounts when
evaluating investment strategies.
Chapters
00:00 Understanding Net Rate of Return and Inflation Impact
02:51 Strategic Asset Allocation for Combatting Inflation
06:11 The Role of Balance Sheet Allocation in Rate of Return
09:05 Composition of Promise-Based and Market-Based Assets
11:56 Evaluating Investment Strategies Beyond Individual
Accounts