Today on the minute – retirement myth #2
As I mentioned yesterday, I had a long conversation with an old friend this weekend and he had some really weird notions about retirement that I called retirement myths because I believe he is not alone in his beliefs and retirement is too important to be on the wrong side of the truth. Today I want to talk about one more myth that I uncovered in our conversation.
And, that is chasing the latest and greatest investments in search of a return. I applaud him for using ETFs because they tend to have lower fees and as you know fees can really eat into your return, but all ETFs are not all created equal when it comes to risk or return. When you choose investments for retirement, they should be well thought out, well researched and they should have a track record so that you have an idea (not a guarantee) but an idea of how they will react in different markets situations. Betting on new untried investments can be detrimental to your future.
If you aren’t sure how to choose investments, you may need to educate yourself or get some help. Most brokerage houses and mutual fund companies like Vanguard.com will have people who can walk you through the process based on your time frame and your risk tolerance level. And, you can always get advice from a financial advisor or the new kid on the block robo advisors.
Getting the right investments is so important to build a retirement nest egg and don’t forget to diversify. In other words, don’t put all of your eggs in one basket.
And that’s the minute for today. Tune in tomorrow when we uncover another retirement myth. You know I love helping people with all aspects of their financial lives. If you have a question, or you would you like some help in getting your financial house in order contact me at email@example.com or go to my website at psworth.com and sign up for a free Discovery Session.
Thanks for listening and as always remember that minding your money really is the path to a richer life!