Patrick Geddes, a seasoned investment expert and author of Transparent Investing, covers asset allocation in this episode, the second of the four-part investing series with the former CEO of Aperio Group. Hear what he has to say about "the most important decision an investor makes."

Geddes explains a simple two-column framework for how to divide your money between riskier assets like stocks and safer ones like cash and bonds.

He tackles the tension between market risk and inflation risk. Drawing on nearly a century of real return data, Geddes builds a powerful case for long-term stock investing while also being upfront that "investing without understanding risk is dangerous."

The episode also dives deep into the active vs. passive investing debate, and the numbers are striking.

"Indexing is one area in life where humility pays off," he says, citing data showing that over 15 years, only 7% of actively managed open-end mutual funds beat the benchmark of the S&P 500. When taxes are factored in, that drops to just 2%.

View the transcript and listen to the full episode here.

Join Us LIVE Tonight for our NEW Documentary Screening and Panel Discussion

A special 1.5-hour session unveiling NGPF's latest documentary showcasing the powerful impact of personal finance education through the stories of outstanding teachers across the nation. Screening to be followed by a panel discussion of personal finance educators and advocates. 

Register to join us tonight (April 16) at 4pm PT/7pm ET. 

About the Author

Hannah Rael

As NGPF's Marketing Communications Manager, Hannah (she/her) helps spread the word about NGPF's mission to improve the financial lives of the next generation of Americans.

More posts by Hannah