Jan 20, 2022

Have you ever said something you’ve come to regret? There are a lot of statements about retirement we may make and look back on with second thoughts. Let’s take a look at some of these statements today and discuss some better ways to think about these topics. 

“I said I would get out of the market if I recovered my losses. But now that I have, I think I will continue doing what I’m doing.”

A lot of people probably told themselves they’d get out of the market if they ever recovered what they lost in 2008. Now that the money they’ve lost has been recovered they may have second thoughts on this approach. 

When it comes to the market, people tend to have short memories. In 2000, a lot of people took this approach. They regained their lost money, but then 2008 hit. We don’t know when the market will dip again. We must act in a disciplined manner. 

“Pigs get fed and hogs get slaughtered.”

When it comes to our decision to pull out of the market. Look at your accounts and ask yourself whether the money you have will be efficient for you to live on. If yes, you might want to reduce risk or exposure. Or if the volatility of the market has become too much for you to handle think about whether you can cut back on how much you are putting into the market. 

“I like the security of cash, at least I know I won’t lose it.”

Having a comfortable reserve of cash is great, but if you are too conservative you could find yourself falling behind when it comes to inflation. It can impact the quality of your life, a lot. 

There is security in not losing your cash in the market, but you are losing money on taxes and in your purchasing power. The cost of living is going to go up regardless. There are ways to protect yourself and still keep up with inflation. 

“Nobody in my family has lived past 75, so I won’t either.”

Maybe it’s not common for your family members to live past 75. But this doesn’t mean you won’t. You may think you’ll only live 10 or 15 years into retirement, but we can’t predict the future. It’s better to over-plan than under plan. Don’t put an arbitrary date on your life! 

“I won’t ever go into a nursing home.”

You can probably imagine how often this is said. The reality is many of us don’t want to face this situation. There are some things out of our control. We hope for the best, but let’s prepare for the worst. 

If you do end up in an assisted living facility it will cost you financially. So, it’s better to prepare. There’s a lot of options out there to pay for long-term care and we can help you find something that will fit your situation. 

What we discuss in this episode: 

0:20 – “I’ll keep doing what I’m doing in the market”

3:40 – “Pigs get fed and hogs get slaughtered”

5:27 – “I like the security of cash, at least I know I won’t lose it”

9:57 – “Nobody in my family has lived past 75, so I won’t either”

13:44 – “I won’t ever go into a nursing home”

For more, visit us online at http://flemingfinancialservices.com