Unfortunately, I have met with many retirees or near-retirees that have the same mentality. They have the large majority of their retirement nest egg invested in the stock markets and are at risk of 'boiling', but they do not jump out of the water - even when they know it is dangerous to stay there at this time in their lives. Retirement time is not the time when you should stay in the water - whether it heats up or not.
Why is this? There are several national studies that do their best to define the thought processes of those approaching retirement and the determinations for why retirees do not make the 'jump' to safety is:
- Lack of Education
- Fear of Change
- Relationships
Simply put, retirees do not have the educational resources readily available to them and are often tugged & pulled in several different ways, so the fear of change becomes an overriding factor. Some also feel that they will 'hurt the feelings' of their existing adviser of they move their accounts into a safer asset class - and are sometimes even expressed this by their adviser.
My thought is this:
- Education is indeed available, but you have to know what to ask.
- Change is inevitable. You have to make the 'mental shift' from accumulation to distribution.
- Relationships will not pay your bills or keep you afloat financially if the markets go bad and you lose your nest egg - and your adviser will not pay your bills for you - so you have to do what's best for you. After all, is it your money, or your adviser's money?
Don't be the boiled frog. Call our office to learn how to 'jump' to safety.
Matt Nelson, president
Income For Life LLC
877-284-8929 toll free
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