Originally posted on August 30, 2022.
Investing can be a dangerous endeavor, especially when it depends on things we don’t control, like prices. Prices are unpredictable, yet it never ceases to amaze me how many retirees bank on the following phrase: “Well, the stock market always comes back.”
Really? Allow me to add: “But not on anyone’s schedule.”
Listen, stock market corrections mean different things to different investors. The investor who retired last December is licking his wounds, wondering how he could be so unlucky. And there’s a good chance he sold at or near the bottom so he could sleep well at night. That’s reality.
Having a guide who can help you see your retirement savings with an unemotional view is a good thing. It’s a reality check. I’ll tell you this, I’ve never liked the idea of using a certain “number” to base one’s retirement date on. That risky strategy depends on the one thing you can’t control—prices. Prices are a qualitative measure, not quantitative.
Action Line: Show me the money. That’s what I like for you, my valued reader. Because cold hard cash gives you laser-like focus on the quantitative such as: Income. What amount of income, for example, can your pile of money create for you? How can your pile of cash work for you and not be a lazy bum? Let’s not lose sight of how attractive bonds are as the rates increase. Don’t get caught up in the prices. Focus on income. If you need help building a portfolio that focuses on income, let’s talk. In the meantime, get to know me better by subscribing to my free monthly Survive & Thrive letter.