Hello! That’s Why It’s Called Retirement!

The recent financial crisis has put the country and the world into a financial tailspin.  Needless to say, it is as a result of many people above us, be it Wall Street, government, and even your broker/banker, that your personal economy is affected.

A year ago, I was speaking with a woman who is getting to retire and, yes, the market was at its peak. She and her broker like so many others were GENIUSES!  We were discussing safe money options that would ensure her nest egg would not be at risk.  However, she was stuck in the conventional wisdom, that you “gotta have growth”.  I am sure she was merely parroting what her broker was saying.  She was comfortable that she was sufficiently diversified.  She was.  All in risky assets.  Well she got growth!  Negative 38%!

Which brings me to the point of my submission this week.  I was reading a popular senior publication last night.  I have seen the same conventional approach written about how to survive retirement in this current financial turmoil.  

1) Go back to work, work longer, even if as a Walmart greeter the article stated.  You will come out ahead WHEN the market recovers.  What?  I am thinking, I just lost a chunk of my retirement that I relied on for income.  Now I have to go back to work, and spend more time and money punching out widgets so I can “retire”.  When will the market come back.  Perhaps before I am ready to retire again when I am 90!  Please don’t make me wait.  

2) Cut back on expenses.  I am thinking. OK, read by candlelight.  Take half, 1/4 of your prescriptions, you know what, it’s cheaper to cut out all of my meds.  Share your cat or dogs, pet food.  Go to the library instead of buying books at Barnes and Nobles.  Thanks for the advice.  This goes perfectly with my diversified asset allocation model!

3) Delay taking social security.  Waiting will yield a bigger benefit check.  True. I am thinking, but I need it now.  Why don’t you tell your broker to delay his social security?  Oh wait, he made money on your growth.  Positive and negative.

I won’t go on, but you get the picture.  The article really glossed over the sacrifices that seniors and retirees have to make now because their portfolios were not sufficiently protected against market risks.  When you are ready to depart from following the crowd and the convention wisdom for premier asset protection and provision, give me a call.  Your banker and broker are not telling you this.  You can get great returns, (better than the 2-3% on your CD), without the risk of loss of principal like stocks and mutual funds.

You deserve a better, more secure retirement than what you have been given.