About Me

Hi Baby Boomers,

Protect Your Nest Egg in Retirement

Let me introduce myself ….

I will be turning 63 this year and I am semi-retired. So I qualify as a Baby Boomer and am writing this blog, Protect Your Nest Egg in Retirement for Baby Boomers.

Until recently I managed my own Superannuation Fund. Whilst I was doing okay, it was taking a lot of my time. So in November 2007 I decided to hand over my Nest Egg to a Wealth Manager. My super funds were then installed in a WRAP Account with a large Fund Manager and the money invested in several Mutual Funds.

After June 2007 I realized the returns were far worse than the returns I was getting managing it myself. I queried the poor performance and was told I should wait 5-7 years before deciding whether my investments were successful or not.

I pointed out that since I had retired and was now drawing a pension from my super fund, I could not wait 5-7 years to find out the investment returns were not there. I said with virtually no income from other sources, I have no way to replenish any losses required to maintain the capital, so that in good years it will give me a good return.

No matter what I said or did I could not convince my chosen wealth managers that there was a problem.

Protect Your Nest Egg in Retirement evolved from my Research

Whilst trying to convince them there was a problem, I accumulated a large amount of information about what can seriously erode my nest egg and that has nothing to do with the Stock Market, Inflation or Taxes. What is more important these things eat away at the nest egg regardless of the Stock Market, Inflation or Taxes.

It was then I realized too, just how much it was costing me in Fees having them manage my Superannuation Fund.

I have detailed my trading and investing experience below if you want to read more about me. The main thing I discovered from trading and investing since 1995 was the importance of money management. Protecting your capital and minimizing losses is paramount to your long term survival when trading. It is no different when managing a Nest Egg in retirement. I am well qualified to talk about protecting capital and minimizing losses because I have been doing it for over 10 years.

This Blog is dedicated to putting all this information in one place for easy retrieval and understanding. It is my hope that other Baby Boomers will also realize the dangers to their nest egg and take appropriate action to protect it.

Please Note: I am NOT a financial adviser and do not offer any financial advice. I only provide information which you need to discuss with your trusted financial advisers before acting on it. I may tell you what I am doing with my investments, or what I might be doing, but you need to make your own decisions in concert with your trusted financial adviser.

If you wish to contact me please use the form on the Contact Me page.

Thank you

David J. Bates

More in Brief …. Covering my Futures, Stocks and CFD Trading and Investing

The Futures Market taught me very quickly about good Money Management

In 1995 I traded the Futures Markets. I lasted about 12 months and traded every day. Much of the trading was blind. By this I mean I had to get my trades to the broker several hours before trading began because they would forward them to their US brokers for execution. Whilst I did not come out ahead I did learn a lot about money management, stop losses and sticking to my trading plan.

I built my own Trading and Investing Systems

Also in 1995 I began developing my own trading systems using Metastock. I was quite successful at stock trading and actually made money. I was out of the market most of 2000-2002 and only re-entered in March 2003 when I believed the trend was up once again. I exited the markets in December 2004 because too many of my stop losses were triggered and I thought I should sit on the side lines for a while. I managed a 34% annual return from March 2003 to December 2005. But I could not get back in using my tight stop losses and get a profit buffer before a retracement in the market occurred. So I sat on the side lines with most of my nest egg until I stupidly gave it to a WRAP/Mutual Fund Manager to manager for me just as I went into semi-retirement.

Wealth Managers may fail to Protect Your Nest Egg in Retirement

Luckily I made the decision to redeem my nest egg in total from the WRAP account in November 2007 and have it sitting in cash. In Australia I can get a return of about 7.5% in a cash account or 8.3% on term deposit. I have chosen to split my nest egg across several banks just in case there are sub-prime problems lurking in the Aussie Banks they have not admitted to yet. We should know soon ;0)

Excellent Money Management Skills kept me Safe whilst doing highly leveraged trading

I have also traded CFDs with CMC for about 18 months. At times I was leveraged up to $300,000.00 with 1-3% margin. Ouch!. I was actually making good profits initially, but could not keep it. This is normal when trying to learn this type of trading. My money management skills helped me minimize my losses but they slowly mounted up and I decided whilst I was good at developing and following a system, I just did not have that extra skill to become successful. I was also slowing down in my “real job” and as my income reduced from it I stopped CFD trading.

My experience made me realize Wealth Mangers will not protect my Nest Egg in retirement

I’ve included this information here so you may know I have some experience trading and investing on my own behalf and have enough experience to know when I am being fed a line by the WRAP/Mutual Fund Managers. This blog is aimed at helping other baby bloomers get control of their nest eggs. There will be a financial feeding frenzy if Baby Boomers don’t take control of their nest eggs.

I am putting in place a low maintenance Nest Egg Investment Strategy which I will write about on this Blog

I have a plan to put some of my nest egg in the market once the volatility settles down. I will be using stop losses though and not hope. Daily moves of 3% in the stock market may mean I will be in cash for a little longer. In retirement being overly cautious in these markets is common sense. I will be setting up my Greg Heiple’s Teeter Totter and using Jim Otar’s retirement calculator software.

If you have any questions about my blog, the posts or my About page please contact me using my contact page form.

2 Responses to “About Me”

  1. Stephan says:

    Hello David,

    My name is Stephan and I have read your blog with interest.

    I am part of a financial website and I would like to discuss with you possibilities of developing relations between our two sites.

    Your market is complementary of mine, and we pursue the same goal.

    I would greatly appreciate if you could drop a line after having paid a visit to SmartStops.net

    Best Regards,


  2. Hello,

    You have a very interesting site and we want to cooperate with you.
    Using your own content you can increase the daily number of visitors to your site by 10-20%.
    It’s free. All you need to do is place our news feed informer somewhere on your site. It doesn’t matter where it’s positioned, even at the very bottom of the page.
    To bring you new visitors we will make links to the news on your site and put them on our news page.
    I look forward to building a partnership with you!

    Have a nice day,

    Julia Brosmer
    julibrosmer at gmail.com

    us.MarketGid.com – news and product portal
    Daily traffic: over 1,5 million visitors
    Alexa rating: 304, http://www.alexa.com/data/details/traffic_details/marketgid.com

Leave a Reply

CommentLuv badge