There is nothing pleasant about a bear market—not the anxieties they cause, not the paper losses, not the relentless drip, drip, drip of reports in the media about this or that daily downturn. The gut instinct is to stem the losses by selling before the market goes down further, but locking in losses after the fact has, historically, almost always been the wrong move.
The “money illusion” refers to how we view our buying power today versus in the future. Are you falling victim to this potentially dangerous ideology?
. . . a need for precision sometimes can be paralyzing. We want the perfect outcomes so badly that we make no decision out of fear of making the wrong one . . . The question to ask yourself is, “Would you prefer the opportunity to be precisely right or the opportunity to avoid being precisely wrong?” Read more . . .
We talked for another 35 minutes about her expectations and aspirations, but after a while, I simply told her, “I, and the stock market, cannot make you wealthy; only you can make you wealthy.” I further explained that the markets can help grow your money and help you stay wealthy, but counting solely on the financial markets, or an advisor, to make you wealthy is not enough. It is most likely that you will earn more in your business or career than you will earn from the investment markets. Your financial advisor does not make you wealthy. We are here to help you get to where you want to be given your circumstances. We help optimize your situation, help you make efficient decisions with your limited resources, get you to take action, and employ a disciplined approach to the investment markets. In other words, you might not bring filet mignon to my office, but I guarantee if you brought chop meat, I’d help you make the best meatloaf around!
For most people seeking financial advice, especially those approaching retirement, many of their large decisions have been made already. The house you live in, the size of your family, your career and lifestyle expectations are determined by this point. They’re unlikely to change and really set the foundation of your financial picture.
You may be past full retirement age, but did you know you can undo the decision to delay your benefits? A lump-sum payment may be right for you if you’re suddenly in need of cash.