A word about gold. You own it for times like these. It’s like insurance. You hope you never need it. You hope it goes down in value because typically, when it does, stocks are going up. It’s why Your Survival Guy doesn’t dedicate too much to the yellow metal, but I have plenty to keep me comfortable. How about you?
When it comes to one’s own comfort level, that’s a question best answered by you. One of the pitfalls when we read and read and read about a stock is that we convince ourselves it’s a no brainer to buy it. It can help to have a little insurance in case it doesn’t work out as planned.
Having the right mix for you may not feel great all the time. It’s been hard to own bonds and it’s been hard to own stocks at different times this century. The key is to have the right combination so you can reduce the dips even if you miss a few of the peaks. When you look at the efficient frontier, you begin to teach yourself the value of asset allocation catering to your needs.
Stocks may do well over time. You may have time when you’re saving for a rainy day. But in retirement, it’s raining, and you need to get away to clearer weather. You have trips to take even if you don’t have the peace of mind of a job and a paycheck like you used to. That’s OK. It’s why you have the money.
Investors who “set it and forget it” and put their heads in the sand, hoping everything will be all right, are wondering what to do. Turns out it’s not that easy. And in retirement, money has never been more important to one’s way of surviving.
Action Line: When you’re ready to have a serious discussion about your situation, let’s talk. Email me at ejsmith@yoursurvivalguy.com.
