Video #3: Steve Forbes Answers Your Questions

In this third video Steve Forbes and John Shubert answer YOUR top investment questions and concerns. After thousands of inquiries from our VIP Attendees, we’ve picked the top questions that have the broadest reach for our viewers. 



After thousands of inquiries from our VIP Attendees, we've picked the top questions that have the broadest reach for our viewers. And in this exclusive video Steve Forbes and John Shubert will answer these questions directly.

So whether you're a retiree with no extra money to burn, a professional with no time to invest, or a student just getting started with investing, Steve and John hold nothing back as they tackle tough issues pertinent to you in this candid Q&A video.

One last thing: Take a quick moment to review the additional questions and comments we've added below. These are some of the ones we received after filming.

Dear Jeff,

I have wanted something like this ever since I retired in 1999. Information about the market and what to do with one's retirement assets is confounding to us lay people who do not eat, drink and sleep investments, so thanks for doing this service.

It is not surprising to me that the response has been great.

I suspect that my situation is not unlike that of many other so-called retirees. When I retired in 1999 I was required by government regulators to send my lump sum to a bona fide investment outfit or pay a huge tax penalty, so I sent it to LPL Financial in La Crosse, Wisconsin. I sat down with the "adviser" . . . picked some stocks he was recommending, some bonds and some cash.

I started with 850K, but lost 100K when the dot-com bubble burst.

Then I took all that was left, just north of 600K, to [another company]. Their philosophy is to use index funds for stocks and bonds and play for the long run . . . which I have heard so many times before . . . in the long run the market will average a 10 percent return. Well, I am in the long run at almost 73 years with about 125K left in my portfolio.

In addition to decent real estate holdings in farmland and our home value, we depend on our portfolio for a monthly supplement to our Social Security and other income.


We have cut our expenses to the bone and finding part-time employment at our ages is pretty difficult in the rural area where we live.

Feel free to use my example any way you see fit, but I am telling you that we are not unique in our financial circumstances/predicament.

Looking forward very much to participating in the webinar and again thanks for doing it.


John H.


Your question really hits the dilemma for all people who are near retirement or retired.

As you note, it's not just about having a decent amount of income or cash-flow . . . it's also about growing your retirement assets at above-market rates.

That can't be accomplished just by investing in mutual funds because these funds have their own problems — over-diversification, high costs, and most importantly for investors like you, underperformance relative to benchmarks like the S&P 500.

The key is concentrating your equity investments into a smaller number of holdings — but it's important that these holdings have a strong chance of gaining in value.

That's why what my colleague has to share on Thursday is such a revelation.

As John Shubert has noted to me many times, the best mutual fund managers are great stock pickers, but their best picks don't help their overall fund performance because they are required to own too many stocks in the portfolio — 100 or 200 stocks . . . or more!

But John has found a way to cherry-pick those best stocks to achieve higher returns with less risk. And we will show you how this works on Thursday at 1 p.m.

Looking forward to having you join us.

Warm regards,


P.S. Thank you for the candid email, John — I agree that you are not alone in your experience.


Can you ask Steve and John what they think is the short and long outlook on gold and silver, and maybe the miners stocks.                                                          




Thanks for your note.

Steve Forbes has long been an advocate for a return to the gold standard, in order to guide U.S. monetary and economic policies. So long-term, he is a believer in the benefits of owning gold.

However, he has also noted that owners of precious metals need to be prepared for the price volatility that's an inherent part of that market. As you probably know, gold hit new all-time highs in 2011 at $1,800-$1,900 an ounce, while today its price is nearly 40 percent lower.

The bottom line, and Steve has stated as much, is that having a small percentage of your holdings in gold or precious metals can act as a hedge in your overall portfolio.

Fact is, America always gets it right and in the end, the equity markets will be your friend.

And this is where John Shubert can add significant value when looking at the equity markets for your portfolio gains.

You will see exactly what I mean when you join us on Thursday.

Thanks again for your note.



Hi Jeff,

I would like to know if I purchased foreign currency vs. gold or silver, what is the most stable currency that I could purchase?

I figure after the economic collapse in September or October of 2015, I could always exchange it back into a spendable currency. What do you think?



Diana, of course you have to ask yourself — what if the economy doesn't collapse in 2015?

None of us has a crystal ball. But rather than limit your choices to just foreign currency vs. precious metals, I would personally encourage you to look at owning stocks as a strong choice.

And as you will see during The Newsmax Investment Crisis Summit, Steve Forbes and John Shubert make a very strong case for using equities to grow your wealth in any market.

Consider this . . .

If the value of the dollar goes down, then the prices of some classes of stocks are destined to move higher.

Let's take large, U.S.-based multinational companies as one example. These multinationals do an extensive amount of their business (product sales) in places outside the United States.

When the dollar loses value, these companies' products become cheaper for people outside the U.S. to buy. Sales go up, profits go up — and over time, so will the multinationals' share prices.

I hope this helps.

And stay tuned on Thursday for more details on how you can use concentrated stocks to grow your wealth with far less risk than you think.

Kind regards,



I'm 74 and my wife is 72.

We are holding:

  • stocks
  • munis
  • mutual funds
  • money market funds
  • hard assets
  • paid for home
  • financed rental townhouse

What's your advice and counsel for asset preservation?

What do you think about the future of gold and gold mining stocks?


George B.


Unfortunately I am prohibited from giving any direct investment counsel, but I will say it certainly looks like you have plenty of diversification already. Congratulations.

Some of the big-picture items to keep in mind are to adjust for the impact of costs, and inflation over time, and how that could affect the value of the assets you invest in.

Right now, the U.S. government says inflation (as measured by the Consumer Price Index) will be around 2 percent a year.

So over 10 years, our money loses 20 percent of its purchasing power (2% x 10 years). If inflation runs to higher levels in the years ahead, then our purchasing power is eroded even further.

That's a big problem for money market funds, since they pay virtually no interest anyway. It's also a problem for mutual funds, which carry higher costs (up to 2%-3% a year, depending on the fund), and usually underperform the stock market anyway because fund managers tend to over-diversify their portfolios. (In other words, they own too many stocks.)

So while diversification of assets may seem important, don't forget to focus on certain concentrated investments that can help you earn above-average rates of return, so you can outdistance the eroding effects of inflation.

We will go into this in more detail at the Investment Crisis Summit.

We look forward to having you join us.

Best regards,


Dear Sir,

I will be 62 later this month (November); have a portfolio approximately $350K with most of it in cash IRAs/401(k)s; no plans to ever retire as I doubt it will be possible but remain hopeful.

Since withdrawing money to invest somewhere besides the market will result in tax hit of $25K or more, I feel trapped.

Don't trust the market; have been essentially out since '09; and wonder if the strategy you plan to reveal is all about where to be in the market (such as equities) or move out of the market. If the latter, could you address how to do that without the tax hit? Thank you.

The short answer is yes. Make sure you watch the third Steve Forbes video in the VIP Primer Series.

Steve and John answer many attendee questions, and I recall John speaking about using his strategy in tax-advantaged plans.

So take a quick look if you get a chance before the event.

And we look forward to hosting you on Thursday.

Kind regards,


Hi Jeff,   The more I read the more I distrust (distrust is not exactly what I mean) the people who handle my money. 

For years I read and absorbed much about stocks and bought tax-free bonds as well. I am now 75 and can't do it anymore and haven't for several years. I was with two prominent financial firms for several years. I left them both and went to another nationally known firm which has been OK. But I don't see any dramatic gains. I do see losses. I keep reading lately about how it has been reported investors do not want to get their clients into something where they will get a large return. Nor do they want to put clients into low-return stocks. 

Geri B.

Geri, what you're describing is, unfortunately, all too common.

One of John Shubert's realizations about the mutual fund industry is that while there are many good fund managers, most of them are constrained by industry risk-management practices that ultimately keep them from getting those "dramatic gains" investors need to overcome the last decade of boom and bust markets.

Plus, it doesn't help that mutual fund managers aren't paid based on the gains they ought to be achieving for fund holders like yourself.

Instead, they're paid based on the amount of assets they have under management. The result is that fund managers end up with portfolios that, at best, perform no better than the market itself (and data shows they usually underperform the stock market by a percentage point or two).

In the meantime, their fund's asset size (thanks to everyone's 401(k) contributions) slowly grows from $1 billion, to $1.2 billion, etc. The fund company gets rich, while its fund investors grow poorer because of the long-term erosion of their buying power due to inflation, and the 2%-plus in annual fees that the fund company charges to "manage" your money.

Hang in there. We are going to get into the details of this on Thursday and how you can tilt the scales in your favor once again.

Thanks for the note and I look forward to having you join us at the main event.




I have a company that manages all of my retirement fund investments. How would I as an individual be able to advise THEM on how to invest for me? And, if this is not possible, how would I go about getting the money out of the various funds to manage this money myself? I am not of retirement age yet and could face early withdrawal penalties. 

Lisa R.


This is a great question. And one at the top of our list. We will be addressing this in the Q&A video with Steve Forbes and John Shubert. So make sure you take a look as soon as you have the opportunity.

Of course we will go into even more detail on Thursday. So stay tuned. We look forward to having you join us then.

Kind regards,