The pain of investment losses will hurt more than any joy future gains will bring you.
The first rule of retirement income planning is never run out of money. The second rule is never to forget the first.
One thing for certain is that when the stock market is going up, everyone thinks they are a genius. The problem is that we all understand that over time markets go up. The problem is that over time, stock markets fluctuate a lot in the short-term and we all need income in the short-term.
I have told you before retirement comes with its own challenges and may last a very long time.
I understand the stock market.
I love the stock market.
I can speak about them for hours, however, its important to know that the stock market is just a tool.
Although it can truly be one of the greatest wealth creation tools ever created, many investors; don’t like it, don’t understand it, and they often misuse it.
Many of our clients are currently retired or will very soon be retired and they get concerned with news they hear. They are also concerned about issues going on in their lives. Risk is an issue for them. Even though they truly enjoy when markets go up, they are truly concerned of what will happen if it goes down.
This is why I believe in carving out and re-balancing your gains. This moves a portion of your investments from risk investments to more reliable and safe investments. At the same time it protects your income, and possibly increases your income into the future without increasing your risk. Remember, “the pain of investment losses will hurt more than any joy future gains will bring you”.
Even though you will almost never believe it, “carving out and protecting those gains and moving them out of risky investment” will actually over time allow you to have more money for retirement with security and enjoyment.
