Rule Number One – Avoid Large Losses in Retirement
Downside Investment Risk Seriously Underestimated The Report “Tail Risk: About 5x Worse Than You May Think” is a realistic assessment of the frequency and depth of the downside investment risk based on actual results. It discusses the actual frequency and size of a loss vs. expected loss on returns on the S&P 500 over 50 years from 1960 [...]
Speculative Bubble– Investor Nightmare Right now the world of money is in a massive speculative bubble. Almost every financial institution from fund managers to sovereign wealth funds are playing the markets. Be it commodities, high frequency stock trading, or foreign exchange they are taking massive gambles using other people’s money – YOURS. This is partly [...]
I have been reading several forums on stop loss orders and the problems people have with them. Many people abandon stop loss orders in a Bear market after getting kicked out of their stock positions and taking some losses. Stop Loss orders are easy to understand. One of the rules of investing is don’t invest [...]
Tags: Avoid Large Losses, cut losses short, let profits run, protect your capital with stop lossesRight now many Baby Boomers might well be lamenting a large loss in the retirement fund. Many like Paul Escobar may have done all the right things and saved for their retirement, only to lose much of their nest egg and their job as well. “As of today, no surprise, he’s lost 45 percent of [...]
I am still hearing financial gurus telling everyone that they should take a 5 or 10 year time horizon when investing in stocks. This bears no relationship to what happens in the markets. It’s nonsense. Taking any sort of fixed period as a basis for investing that takes no account of how that investment will [...]
You may well ask how did Wall Street, Governments and the wealth management industry make your nest egg disappear. You should know how it happened so you do not repeat the same mistake of trusting people who never had your best interests at heart in the first place. Your money was your fund managers to [...]
When Baby Boomers are in retirement their number one goal should be to avoid large losses. In Retirement this is more important that chasing returns. The reasons for avoiding large losses are; You may not have enough income from other sources to replace the losses. You do not have time on your side to replace [...]
There, I’ve admitted it – I’m guilty as charged. As a Baby Boomer I am highly risk averse. The truth is I was risk averse before I was classified as a Baby Boomer too. I’ve always been that way. But there seems to be some stigma attached to it. It is as if I am [...]
Tags: baby boomer risk averse, cash is a position, respect risk when investing, risk averse
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