Why ever worry about ‘getting back on track?’
January 13, 2010
I recently saw a commercial where a company was claiming to help clients get their retirement plans ‘back on track.’ That got me thinking…how long will it take the average person to make up for the losses they suffered during the near market crash? And also, wouldn’t it be nice if something as important as your retirement funds were not subject to the roller coaster ride of the market?
There has to be a shift in thinking, traditional financial planning just isn’t working anymore! Watch this short video where a certified financial planner tells how 40 and 50 year olds can protect their retirement: Video
My favorite part of the video:
Certified Financial Planner: “make sure you’re investing in your 40’s and 50’s, especially in this market, everything is cheap right?”
Anchor: “Yeah except if your retirement plan has tanked lately.”
CFP: “Well that’s the key of being in your 40’s, you’ve got time. I mean you’re not going to retire for 20, 30 years right?”
She continues on to say that if you are worried about the economy, “make sure you’re still investing in your 401k.”
WHAT?!?!? So let me get this straight, I am upset that 20, 30, sometimes up to 50% of my retirement funds are gone and to make sure I “protect my retirement” I should keep throwing money into the very vehicle that has lost all that money?!?
As I stated before there has to be a shift in thinking, traditional financial planners are still using buzz words like asset allocation, diversification, risk tolerance, and for some reason are still advising their clients to put their money at risk in hopes of high returns.
Why worry about having to get your financial plan ‘back on track?’
If you could save for retirement in an efficient, risk free, and tax advantaged way would you? Would you rather have constant, predictable growth, or a risky roller coaster ride with an unknown outcome?
While those advised in the traditional manner are postponing retirement and waiting for their investments to make up for lost money, you could be enjoying steady returns and have more control over your financial future.
The key is to stop losing money!