One of my favorite phrases from Dick Young is pretty simple. And if it were to be followed by retirees, they’d avoid a lot of heartache in their later years.
When you’re in an upward-moving market, the general feeling is that it will continue. It’s the “wisdom of crowds” moment.
Momentum investing can last months, years, and decades. But it isn’t always forever. It’s why investors, especially retirees, should live their investment lives by this rule:
Work to Make Money, Invest to Keep It.
Action Line: Risk tolerance is emotional. It’s high in good times and low in bad times. You just don’t know when the good times are ending. Invest accordingly. When you’re ready to talk, let’s talk. But only if you’re serious. Email me at ejsmith@yoursurvivalguy.com
