Don’t forget the bad times…

As we mature, we tend to only remember the good times. Research has shown that as we age, we tend to create blind spots and the blind spots can have serious consequences. Financially, we tend to remember the money we made, not the risks and pitfalls. It can be difficult to remember the S&P 500 lost 50% between 2007 and 2009. And what happened in 2002? The NASDAQ subsequently lost nearly 80% and the S&P 500 lost 50% to reach the October 2002 lows. So, are these blind spots leading you to take far more risks than you can afford? The current evidence suggests that older adults might have unique blind spots related to risk, especially when the market has been on the upswing in the past few years. What did it feel like when your portfolio was slashed in half!
One way to handle these financial blind spots is to put your savings on “financial auto pilot.” When creating a retirement income strategy, I take into account your actual expenses and suggest options that guarantee income to cover your basic bills no matter how long you live. This is “financial auto pilot.” The rest of your savings can be at risk in the market and not affect your day to day living.
$marter Women Colorado is a part of FUEL Financial. FUEL offers not only safe money annuities, but “assets under management” for a small fee. AUM is a group of portfolios offering varying degrees of potential profit and risk created by a separate company. FUEL represents that company. Finding the right balance for you is what I do. Consultations are always no minimums, no charge and no obligation. Don’t know what you have? Lets look at your statements and clarify what you have and what you need. If you already have a financial planner, I am happy to give a second opinion. Knowledge is power.

Don’t forget the bad times…
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