Should you be invested 100% in stocks? That’s up to you. But for my money, I stick to what I know. I know stocks can break investors’ hearts, teaching lessons many will learn the hard way.
In the decades I’ve helped investors navigate their retirement lives, I can tell you no one likes losing money. Not that they’ll ever tell you about the losses. They mix the euphoria of investment gains (because they tell you about it) with the thinking that losses won’t be that bad.
Your Survival Guy’s risk tolerance is low. As is my patience for the “stories” investors tell. I know deep down they think they’ll get out in time. I know that’s easier said than done. I’m OK with my path. Slow and steady doesn’t need to win the race. I’m fine just finishing.
Action Line: Yes, stocks have outperformed over time. But this is your retirement life. Run your finger along the efficient frontier to learn about the past. Invest according to your risk tolerance to be prepared for the future. ejsmith@yoursurvivalguy.com
Originally posted on Your Survival Guy.