Many forms of stock market investing are being influenced heavily by gambling, and directly by human emotion. The goal of any retirement plan is to help the investor to realize the potential mistakes and how to put yourself into a better position with your retirement portfolio. Far too often, though, investors and advisers fail to recognize that the risk being taken should decrease as they inch closer to retirement – but this does not happen sometimes. As a result, the risk reduction is not as much for the avoidance of losing money as it is the avoidance of jeopardizing your potential and future retirement income.
So, who is right and who is wrong? Neither, sadly. It is a combination – and it is up to you to determine the mix.
How do you decide between them? Take the emotion out of it and look at the numbers – because numbers do not lie. Determine your ‘Required Income’ need, solve it with a guaranteed income plan and then choose your risk tolerance for your remaining balance. It is that simple – and we do the math for you.