You’ve heard the story of the little fisherman that was encouraged to go big, right? If he would just add several boats and crew he could make a lot money and then do what he really wants to do…relax and fish. His reply, “Isn’t that what I’m already doing?”
It’s not the amount of money that you have that determines your state of mind, it’s your attitude toward it. If you are relatively satisfied with your nest egg and just want to see it grow enough to keep pace with inflation while generating modest returns,you will rarely have the stress of opening up a monthly statement and seeing a large loss. The problem with going big in the stock market is that prices come down about every third or fourth year on average. That may be fine for younger investors who are in the accumulation phase of life, but those nearing or in retirement would be wise to cultivate contentment with more reasonable expectations. Very few retirees are in position to see their portfolio down year over year 30% of the time!
So how do you find tranquility? The key is relative predictability and that’s where Jackson Private Wealth Management comes in. We guide you to an investment allocation that is appropriate for your age, risk tolerance, and goals. The correct fit for you should be as predictable as the financial markets will allow for with only a rare downturn remotely possible. For example, someone properly diversified for their retirement years over the last decade would have experienced just one negative year, 2008. And that return could have been just a single-digit loss depending on the investor’s age.
While this approach may not sound exciting, it allows you to pursue real adventure elsewhere and leave your investments to hum along with far less worry. After all, isn’t that what money is supposed to do in the first place? To serve as a protection and help ease our way through life? If it is creating stress for you, it may be time to assess what an appropriate strategy would be for you at this age and stage of life.