Hello Everyone – With recent bank news I’m getting lots of concerned emails and phone calls, and I want you to know that I see them all. I encourage you to reach out because it’s real easy to feel like you are all alone in this and then to question what it is you should be doing differently.
Remember what we’ve learned here. We’ve learned that successful investing is all about time. How much time does our money have to work for us? Some like to think that when we retire we will be needing all of our money right then and there, but that’s not really true. Even when we retire, Lord willing, much of our money still has lots of time. Here’s an example: let’s break our money up into 3 chunks. 1/3 we will use between age 65 and 75. Another 1/3 we may use between 75 and 85. And another 1/3 between 85 and 95.
This is a simplified example, but what it shows us is that even when we do retire, much of our money we may not be needing for 10-25 years! So really we can have different strategies for buckets 1, 2 and 3, based on how much time the money has to stay invested. As we near retirement, and then we age into retirement, we set these buckets up and adjust accordingly.
Bucket #1 Conservative (Cds and fixed rate annuities work good here)
Bucket #2 Moderate (Moderate Mutual Funds can work good here)
Bucket #3 Aggressive (S&P 500 and other etfs can work good here)
Bottom line, if you think it’s time to start constructing these buckets for your retirement, or you just want some feedback, then please email or call me so I can take a look and get back to you, as I surely will!
Best Regards,
Mike