“The cost of living continually goes up because of inflation. Hopefully, most of us are working at jobs or running businesses where our income goes up at least as much if not more each year. If not, our incomes won’t have the purchasing power that they did in the past and we’ll be taking, in effect, a pay cut. What about when you retire? You still need your income sources, your investments, social security, etc., to stay ahead of inflation or else your purchasing power will fall behind year after year, too. To do this, you’ll need investments that deliver enough return to keep up, and those investments will carry some risk. There’s a common view that you need to start putting all your savings into super conservative investments when you retire to help protect them against market downturns. Yet, by investing over- conservatively in retirement you may just watch your purchasing power decrease every year to the point you outspend your slow-growing investments. You can end up outliving them and experiencing exactly the financial heartache you tried to avoid by playing it so safe. I can help my clients avoid that trap by making sure they understand the long-term results they may need. If you’re heading into retirement or just want to learn more about this, contact me and let’s talk. You can also visit my blog here: https://evanness.wradvisors.com/blog were I have articles and more videos like this.”
DISCLOSURE: Investing involves risk and the potential to lose principal.