Investing Questions Answered – Happy Hour Style

martinis and your money

Investing Questions Answered

It’s the last Friday of the Today, we are joined by Wendy and Eric from DIY Fund, the show’s new sponsor, to talk about investment questions we have from market caps to target-date funds. I hope you enjoy the episode!


Melanie from Dear Debt — Red wine

Tonya from Budget and the Beach — White wine

Mrs. Frugalwoods with Babywoods from — White wine

Wendy and Eric from DIY Fund — Red wine

Shannon — White wine


  • Why is the market poor right now?
  • Why do people like ETFs?
  • What are your thoughts on Target-Date funds?
  • How frequently should people be looking at their investment accounts and thinking about rebalancing them?
  • What do the terms large-cap, mid-cap, and small-cap mean?
  • What is sustainable investing or socially responsible investing?
  • How do you handle trading yourself?
  • Do you have a book recommendation for beginner investors?


  • During this downturn, you should be focusing on how to manage your money.
  • Even though you’re experiencing a loss during this downturn, you’ll still see a return in the long-term.
  • At the end of the day, you don’t have control over trading activities, but you do have control over how much you’re saving and how much you’re contributing to your investment and savings accounts—focus on these things during downtimes.
  • ETFs have significantly lower fees than mutual funds.
  • Outside of retirement accounts, target-date funds have higher fees than ETFs; the biggest time and place you see target-date funds are in retirement accounts provided by your company.
  • Target-Date funds do your asset allocation and rebalancing for you so you don’t have to really look at it or think about it much—perfect for a retirement account.
  • You have to decide if the fees of a target-date fund justify the asset allocation and rebalancing it does for you.
  • If you have the stomach for it, Eric says knowing everyday about what is happening with it is great.
  • Rebalancing once a year is ideal.
  • A down-market like we are experiencing right now is the perfect time to take a look at your investments and rebalance if needed.
  • Market capitalization of a company is the amount of shares you’re willing to sell to the public X the price of the share.
  • The terms large-cap, mid-cap, and small-cap describe a company’s market capitalization.
  • Sustainable investing/socially responsible investing is investing in companies that align with your personal beliefs.
  • There are mutual funds and ETFs that group these companies together.
  • Eric suggests Robinhood as a free trade option.
  • If you are paying more than $10/trade, fire whoever you are using.
  • Use DIY Fund to research all your solutions and make sure you are inline with your goals.
  • Eric suggests reading a classic like A Random Walk Down Wall Street to understand the randomness of the market.
  • Shannon suggests reading The Bogleheads’ Guide to Investing and The Intelligent Investor.
  • Wendy suggests beginners listen to the DIY Shots series on Martinis and Your Money.


  • Throw away your red pens but don’t throw away your red wine.
  • The new Showtime show Billions is amazing.
  • Shannon gets geeky after a glass of wine

Do you like target date funds? Are there any mutual funds that you think are worth the extra fees?

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Shannon is a financial planner who left a “traditional” financial services firm to start her own company, The Financial Gym, because she felt traditional financial services firms did not have the tools or resources to help people in their 20s and 30s who are starting out and trying to build assets while also managing debt. She realized that the key to long-term personal financial success is a commitment to financial fitness and making smart financial choices. Through her blog, Financially Blonde, her book, Train Your Way To Financial Fitness, her podcast, Martinis and Your Money and The Financial Gym, Shannon is committed to making financial fitness fun, easy and accessible for everyone.


  1. Nice conversation! I agree that rebalancing at least once a year is very ideal. I usually do it on my birthday as they often suggest doing this on your birthday, on the reasonable grounds, that this minimizes the risk you will forget. Haha!

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