Feb 23, 2018
Markets go up and down, but if you have a solid investment plan
you should still feel secure. We can’t go back in time and change
our investments, but we can avoid making investment mistakes today
by learning from mistakes that others have made.
Main Questions Asked:
- What are some investment mistakes that I should avoid?
- Do I have an investment strategy that is appropriate for my
- Do I have a solid plan or does my current plan need some
Key Lessons Learned:
Learning from the Investment Mistakes of
- In 2008, I put my money in cash. This isn’t one of those things
everyone admits they have done. Most people are embarrassed because
they locked in their losses. Fear, greed, and listening to the
wrong people causes bad decisions.
- I wish I understood the risk in my portfolio before I took the
loss. People often only find out they are taking too much risk when
the market goes down and it is too late. It’s important to make
sure that your risk is appropriate for your situation.
- I wish I had known my social security options, and I would have
waited. We always wish we could get do-overs. We can’t predict the
future. Things like survivor options matter. Get expert input and
make the right decisions.
- I should have put more in a Roth instead of a 401k or
traditional IRA. Be smart about saving money. Think about how tax
implications will affect you in the future. Even if you are retired
you can still make a Roth conversion and pay some taxes now which
will make that pile of money tax free in the future including all
- I probably retired too early. I might have to go back to work.
You need to get a plan because you might be better off than you
think. You also may need to change some things. Having a plan and
retirement income projection will tell you exactly what you need to
do and earn to have enough for retirement.
Things You Should Know
- The global bond market is about twice the size of the global
stock market. The big money is in bonds not stocks. Big
institutions skew towards bonds because they offer stability and
pay a predictable interest rate.
- Income tax rates are currently close to historic lows. Marginal
rates used to be close to 70%. If tax planning is part of your
retirement, you may need to be making moves like Roth conversions.
It all goes back to good tax planning.
- Living benefits or accelerated benefits on life insurance can
be a nice long-term care solution. In the old days, people would
buy long-term care policies. A long-term care benefit in a life
insurance policy guarantees you will collect someday.
- You probably have a lot more risk in your portfolio than you
realize. You don’t discover your risk until the market goes down.
The best thing you can do is get a risk analysis of your
The biggest impediments to making good financial decisions are your
emotions. Moving money around based on emotions guarantees losses.
Have a plan and stick with it.
Links To Resources Mentioned
Money Map Retirement Review
Thank you for listening!