Today’s Hack
What is the secret to retirement success? Well, here’s a tip: get out of your own way! You’re either going to be your biggest asset or your biggest problem when it comes to retirement planning.
There are plenty of external factors that can get in our way, but a lot of investors, unfortunately, end up self-sabotaging especially during market volatility. People are nervous, and emotional decision-making can prevent you from a successful retirement. On today’s episode, we’ll break down this hard truth and what the true secret to a successful retirement is.
Fear and Greed
The market is well overdue for a correction. Anytime a market is performing above an average you’ll want to be ready to give that money back. We’ve been lucky enough to have a bull market for the last decade and more. Finding the right advisor can help you navigate these market turns when fear and greed may kick in.
Taxes
Investing in a product just because you think it’ll be beneficial when it comes to your taxes can be dangerous. You can’t let taxes guide your whole plan. While diversification is important to have a well-rounded plan, making a portfolio move solely for taxes isn’t a great strategy.
Leaving too Much Cash on the Table
People assume there are only two things to do when saving for retirement: invest in the market or cash. But is your money just sitting in a bank somewhere? Cash can be a great tool and a risk opposition for many people. However, you need to understand why you are in cash. Is it out of fear or strategy? Cash isn’t the problem; it’s how and why you’re using it.
Freezing Up and Not Doing Anything
Sometimes we become paralyzed when making a decision. This can happen when your financial planning decisions are reactionary. Indecision is a decision though. Sometimes doing nothing is right, but doing nothing because you’re fearful isn’t good. You can mitigate this fear with a plan and advisor. A plan protects your decision-making process and your finances.
[1:09 ]– We aren’t being harsh
[3:44 ]– Fear and greed
[6:40] – Investing for taxes
[9:55] – Too much cash
[14:03] – Not doing anything
A Quotable Moment:
“Sometimes, doing nothing is the right thing…The emotional side of investing is kicking in big time now.”
-Phil Putney