Avoid Running Out Of Money In Retirement


  • The truth about how long most people's retirement lasts

  • The "big 3" changes that most portfolios don't account for

  • Simple changes to maximize returns you can make today


Investor “Penalties”

Being a proponent of evidence-based investment strategies, investors often ask me “What are investments I should stay away from?”
In order to answer that question, the following questions need to be answered.
· What will be the harm?
· What will be the cost, perceived and not perceived?
· What is the opportunity cost?
· How will it effect my portfolio?

When those questions are asked, and answered, the following investments won’t do your portfolio much good. The cost is real. The “Opportunity Cost” (the cost of not receiving a return that could have been achieved with a different investment) is often a neglected cost to investors. If you receive a 3% return, but could have gotten a 6% return with another investment, your real cost is 3%! Very significant.

Here are investments investors should stay away from, and focus on a globally diversified portfolio made up of index funds, based on your risk tolerance:
· Commodities
· Gold
· Tech stocks
· Subprime Mortgage-backed securities
· Long bonds
· An all U.S. stock portfolio

· Annuities!

o An annuity will lock your money up for a long time, similar to taking out a another mortgage, restrict your access to your funds, and historically, provide a return not much better than a CD. A liquid bond portfolio is a much better choice. If you would like to explore ways to escape the “Annuity Trap,” give me a call.

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