#42 Making Sense of the Economy

Path to Progress with Paul Heintzman and John Ackerman

Keith Blakely, CFA, Investment Advisor at Stock Yards Bank, joins us to break down what's going on in the economy and how it impacts millennials.

Ever hear about what's going on in the economy but aren't sure how it impacts you? In this episode, we focus on making sense of the economy.

Making Sense of the Economy:

***Disclaimer - the opinions of Keith Blakely and Drunken Money in this episode are not intended as specific financial advice. Consult with a financial advisor before investing.

• Why does the economy matter?
  • Keith breaks down why the economy's important and defines some of the main drivers of the stock market (GDP, Inflation, Dividends, Stock Buybacks).
• Keith explains why time in the market is more important than timing the market. As a millennial, your greatest asset is time, so you're perfectly set up to have a successful retirement by investing for the long-term.
  • The U.S. stock market is almost always up over 10-year periods, and has never been down over 15-year periods.
• We learn what stock Keith is currently bullish on, and his reasonings why (note: this isn't specific investment advice).
• Keith tells us why the Federal Reserve is important and how it can help control the economy.
• What is the current state of the economy? Keith tells us his take.
• What are the next big industries about to take off? Keith explains why he is focusing on Blockchain (the method behind Bitcoin) and Virtual Reality/A.I.
• What is the impact of robo-advisors on investment? Surprisingly, Keith thinks they will actually help him and his profession in the long-term.
• How should a millennial start investing?
  • Pay off their debt (highest interest rates first), contribute to an employer-matched 401(k) first (FREE MONEY!!!)
• We cover why a Roth IRA or 401(k) is usually a better investment for millennials than a traditional IRA or 401(k).
• Keith explains why he loves target date funds, and why millennials have the opportunity to be riskier when they're young.
• What are bonds? Keith breaks down exactly how bonds work.
• We learn Keith's thoughts on real estate investing and the importance of diversifying investments.

Last call questions and answers:

• Best career advice:
  • Work for two years after college and then evaluate your situation.
• What advice would your 60-year-old self give you today?
  • Keep friends and family close and enjoy life.
• Best thing spent money on the past 6 months:
  • Callaway EPIC Golf Driver
• Financial vice:
  • Alcohol and golf
• What media do you recommend:
  • Christine Benz articles on Morningstar
• Favorite drink:
  • Bud Light

Special shoutouts and show notes:

• Bud Light - the beer of choice for this episode and Keith's favorite thing to drink.
• Charles Schwab - Keith is bullish on Charles Schwab right now because of their robo-advisor platform and easy access to cash, and it is a favorite investment tool of Paul.
• Betterment - John uses Betterment and loves how easy it is to "set it and forget it" when investing.

Enjoyed this episode? You can learn more why investing early is important for millennials in our episode "The Easiest Way to Get Rich".

Have any topics you want to be covered or amazing people you'd like us to interview? Let us know! You can email us at [e-mail] or [e-mail]. You can also find us on Facebook, Instagram, Twitter, and Linkedin. Please be sure to subscribe to our weekly mailing list at drunkenmoney.com/subscribe.

You can learn more about Keith Blakely and connect with him on LinkedIn.