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Retirees: Don’t Make the Same Mistakes Before a Market Correction
Retirees: Don’t Make the Same Mistakes Before a Market Correction
Take some lessons from the mistakes many retirees made during the downturn that socked stocks in 2008. By adjusting accordingly, you don't have to fear outliving your retirement portfolio, even if you're about to retire.
Thanks @JohnN. This is a provocative article from Kipplinger.
Like most of what appears in the financial press nowadays, a catchy title overstates the substance within. The writer doesn’t quantify the actual number or percentage of retirees who were badly burned by the 07-09 debacle nor is there a stated measure of actual losses incurred. But yep, when the tide began flowing out late in ‘07 many found to their chagrin they’d been swimming somewhat naked.
After cautioning against over-exposure to stocks, cash and bonds, the author tosses out annuities as a possible preventive approach. That’s fruit for further discussion.
My question re annuities would be: Is this a wise time to be buying one in view of the extraordinarily low rates of return on fixed income? I’ll assume that whatever future payout they would provide is very much dependent on the prevailing interest rates at the time of purchase. After all, the annuity provider needs to invest your payment into the same markets most of us have access to through our mutual funds.
Hello I would never put all eggs in one basket and buy all Annuities for retried portfolio. Best to spread out in and place fundsjin diversed in fixed incomes vehicles (varieties vehicles including bonds cash cd).. Kiplinger recently have steered toward more advertisements instead of giving good advising ideas.
Annuities do not give same returns as fixed income overtime
Although a Kiplinger published document; I find no valid background information for the article writer. Have you looked at the various links provided? No FINRA background at all, that I can discover. No pertinent background info of any consequence to money management. At least he doesn't claim to be certified for anything having to do with providing financial advisement. If you're able to discover a proper background for this person; please let us know. I read this as nothing more than a paid advertisement. The only item missing is the "free steak dinner" at the local restaurant.
@Catch - A week’s stay at his ocean-side condo in Florida in March would be even better than the proverbial steak dinner. Yes, we have on-air “financial advisers” up here pitching annuities. Stay far away.
Comments
Like most of what appears in the financial press nowadays, a catchy title overstates the substance within. The writer doesn’t quantify the actual number or percentage of retirees who were badly burned by the 07-09 debacle nor is there a stated measure of actual losses incurred. But yep, when the tide began flowing out late in ‘07 many found to their chagrin they’d been swimming somewhat naked.
After cautioning against over-exposure to stocks, cash and bonds, the author tosses out annuities as a possible preventive approach. That’s fruit for further discussion.
My question re annuities would be: Is this a wise time to be buying one in view of the extraordinarily low rates of return on fixed income? I’ll assume that whatever future payout they would provide is very much dependent on the prevailing interest rates at the time of purchase. After all, the annuity provider needs to invest your payment into the same markets most of us have access to through our mutual funds.
Annuities do not give same returns as fixed income overtime
Have you looked at the various links provided?
No FINRA background at all, that I can discover. No pertinent background info of any consequence to money management.
At least he doesn't claim to be certified for anything having to do with providing financial advisement.
If you're able to discover a proper background for this person; please let us know.
I read this as nothing more than a paid advertisement. The only item missing is the "free steak dinner" at the local restaurant.
https://money.usnews.com/financial-advisors/advisor/carlos-dias-jr-5315390
@Catch - A week’s stay at his ocean-side condo in Florida in March would be even better than the proverbial steak dinner. Yes, we have on-air “financial advisers” up here pitching annuities. Stay far away.