We’ve all said and done things we’ve later come to regret. Don’t let these financial phrases be your famous last words.
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The Bass Lines:
Famous Last Words: I Told Myself I’d Get Out Of The Market After Recovering My 2008 Losses, But Now I’m Going to Stay.
- [00:55] – Please oh please don’t let these be your famous last words. This is a pretty common mindset. When the market crashes you think, “I’ll recover my losses and get out.” However, as time passes, you get greedy and forget the past. As the market corrects again, you get scared, and you start the cycle all over again. This isn’t an investment plan. This is simply allowing your emotions to drive your actions. Instead, you need a strategic plan that will dictate when you’re going to buy and sell.
Famous Last Words: I Like The Security Of Keeping My Money In Cash. I Know I Won’t Lose It.
- [2:40] – While it’s true you’re not going to “lose” your money in a bank, you are going to lose money relative to inflation. As inflation creeps up, if you’re not keeping up, you’re going to lose buying power. Sure, this isn’t a problem in the short-term, but over the course of thirty or forty years, your $100,000 sitting in the bank is going to be worth less.
Famous Last Words: Nobody In My Family Has Lived Past 75, So I’m Not Planning To Live A Long Time Either.
- [4:37] – How could we possibly know when we’ll depart this earth? Thanks to advances in medicine, we’re living longer. While your folks might have died young, healthcare has come a long way in the last 25 years. Sure, we can factor in genetic predispositions and diseases, but it’s really impossible to determine just how long we’ll live. Therefore, it’s imperative you plan for longevity. Develop an income plan that will last you the rest of your life, no matter how long that will be.
- [6:19] – Famous Last Words: I Won’t Ever Go Into A Nursing Home.
- [8:25] – Famous Last Words: I Can Always Go Back To Work If I Must.
Plan accordingly and avoid sticking your proverbial foot in your mouth when planning for retirement. Live a retirement that's free of regret. - Mr. Stillman's OpusTweet This