Risk or Reward: This question is often brought up at retirement - should I continue with Risk and manage my funds because with risk comes greater rewards! Answer - it depends on each individual person - will you have enough to supplement your retirement income, will you be able to keep up with inflation, are the fee based charges going to eat away at your principle, can you afford to take a 20% Market Loss, do you have the time to recover from a loss, do you want to go full time watching the Market. Yes the rewards can be great - but - in retirement years preservation becomes more important than Risk/Reward. Each person is different, here is an example a husband - retired with 4 degrees in business was managing his and his wifes life savings ( $215,000 ) after one year his wife asked him to look at the account, with sweat popping off his forehead and his body cringing he finally showed her, the balance was $81,312 - losing over $133,688 dollars in one year, he tried to explain, the market went up he said I got greedy and thought I was Invincible, he went on to say I started losing and I risked more, and I lost more, the more I lost the more I risked thinking I could bounce back, he went on to talk about the sleepless nights and the fear of telling his wife of 35 years what had happened, the panic, the hours of guilt. So the question becomes was this a prime example of what happens - it is one example,but only each individual can answer those questions per there goals and needs, so you decide your destiny.
Posted on: Thu, 14 Nov 2013 17:34:43 +0000
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