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Picture this scenario…you’re in Las Vegas at a random blackjack table and you’ve brought $500 to the table. You’ve told yourself, “I’m keeping my $500 in my right pocket and all of my winnings will go into my left pocket. If I lose 15% or $75 out of my right pocket I’m out. I’m walking away to find something else to do for the day, BUT when I start winning I’m going to put my profits in my left pocket and what I brought to the table will stay in my right pocket. Boy, I hope my left pocket gets full”.
Does this sound familiar? I’ve talked to many Las Vegas vacationers who play this exact strategy to keep Las Vegas fun (limit your downside losses so it doesn’t ruin your vacation experience). More people go on to say that they also put a limit on the losses of their winnings. For example, if $500 was won that person might think it’s great, but if I loose 20% of my winnings I’m walking away. The thinking is walking away with something is better than winning, but walking away with nothing. Are you this type of player?
So what does this strategy have to do with your retirement plan? Well, you would not believe how many people who play this strategy in Las Vegas (because it makes sense) and knowingly do the exact opposite with their retirement savings plan. In effect, people are walking up to the retirement investment table with no plan to protect their profits. People get into the game with a fist full of money and instead of having a sensible plan to protect their profits, they let their profits “ride” to the next game without ever putting their profits into the proverbial “left pocket”.
Even worse, when the plan fails (2000 and 2008) the dealer leans over the table and gives you the reassuring wink of the eye and say’s “Don’t worry. Just hang in there. It will come back.” Wink. Wink. Who reading this article would stay at that dealer’s table? Not me. I’d be out of there faster than you can shuffle the next hand.
Would you be interested to know that there are ways that you can protect the profits in your retirement plan? Did you know that you’re stockbroker will never tell you about them? Want guess why? You guessed it. They earn their living based on how much of your retirement money you have invested in the stock market and any money that you pull out or protect is lost income out of their pockets. They are the “dealer” behind the table that want you to keep betting at all costs.
When you decide to retire has a big impact on how you retire. If you had planned on retiring in 1 year from now and 1 month before your retirement party the market crashes and you lose 35% of your money, would that impact the amount of income you can generate for your retirement years? You bet it would and many people have lived through that experience and were either forced to work longer or find part-time work in retirement.
It doesn’t have to be that way. If you’re a pre-retiree or a retiree and invested in the stock market contact us to find out how you can protect the profits you’ve recovered since 2008. You don’t have to go through another experience like that again. There is a better way to plan for retirement. Call us at 970-229-1616 or visit our website http://www.solidwealthadvisors.com and fill out our contact form. We have revolutionary tools designed to grow and protect your retirement plan to help you retire with confidence.
Investment Advisory Representative of Royal Fund Management, LLC (RFM), 1515 Buenos Aires Blvd., The Villages, FL ,