Retirement Watch – Baby Boomers Should Take a Look

In my Google travels looking for things to write about on my blog I came across the Retirement Watch web site. I found it when I typed in Avoid Large Losses in Retirement. The first stop was to review his book on Google Book Search. It’s called “The New Rules of Retirement“. Scrolling through the preview of the book I came across the bit I was looking for about “avoiding large losses.  The New Rules of Retirement Bob shows you how to incorporate the Age Wave into your planning.Under a subtitle of “The Core or Foundation Portfolio, Mr Carlson talks about  an investment pyramid with a foundation based on mutual funds or index funds based on a value approach to investing. (Rather than growth stock investing)

Value investing means the fund manager will sell overvalued assets and replace them with discounted ones.

But here are the two most important items for me.

“The Core Portfolio is constructed with the idea that the primary goal of every investor is the avoid large, permanent losses. …. Other investment approaches, such as “buy and hold strategies“, accept large losses over different time periods. Large losses, matter to investors who are retired or planning for retirement.”

So he believes in Rule #1 – Avoiding large losses, and rejects the buy and hold strategies with growth assets followed by the majority of wealth managers until now 🙁

The italics are mine – of course it matters! Something not mentioned or else glossed-over by your average financial adviser.

Based on reading this book review I took a look at Mr Carlson’s web site.

One article that caught my eye was, “Time to Change Our Core Portfolios“. As you know I believe you have to relate your investment strategy to the reality of the markets and the economy. Buy and Hold insists you DON’T PANIC (When ever they say that – I PANIC) and stick to the plan they, in their infinite majesty created exclusively for you. Then tell you not to touch it as it should last you for 40 years or more.

On first look I panicked because the first sentence of the article read, “Our Core Portfolios are long-term buy-and-hold positions” Huh! How does this jell with the “avoid large loss” statements in his book?

I have rationalised that because the core portfolio is using a value investing approach to stock changes in a mutual fund or index fund, using this approach by the fund manager should be minimal. They will be only be replacing overvalued assets with discounted or under-valued ones within the fund when necessary. Also you will buy and hold the fund itself for the long term.

The article goes on to say,

“It is time to make changes in the Core Portfolios. Major structural changes have occurred in the economy and markets, and more changes are on the way.”

So reality-based investing is at the centre of Mr Carlson’s investment strategies for retirees. He then goes on to talk about a two stage approach to changing the Core Portfolio.

Whilst I have a deep distrust of the financial planning industry I am always looking for people within it who espouse a rationale and objective philosophy when it comes to investment retirement planning. Bob Carlson appears to meet my criteria of a person who understands Baby Boomers need to protect their capital first and avoid large losses when in retirement.

As such I would recommend you take a good look at his site and consider his services. He has a free newsletter and a subscription service for a paid newsletter. You can read about the subscription here at, “The Little Black Book of IRA Secrets“. At this time it is on special at $57 saving $42 – 42% discount.

There is no way Baby Boomers will keep up with all the laws and legislation that will come out targeting Baby Boomers, their assets and their retirement nest eggs. Baby Boomers are an attractive target for governments strapped for cash. Subscribing to Mr Carlson’s newsletter may be a wise decision.

If you like it, consider doing more business with him. But make your own judgement. Check out my post on, “My Perfect Financial Planner” and use it as a guide.

I also say that if you find a good planner and adviser, even if they are on the other side of the country, use them. It’s the quality of the advice that will save you thousands and not that fact they are just down the road. Air tickets are cheap, large losses are expensive.

I have no affiliation with Mr Carlson and am not paid any commission on the sale of his newsletter, books, or financial advice.

4 Responses to “Retirement Watch – Baby Boomers Should Take a Look”

  1. Thanks for some really sound advice. I think we are all pretty nervous these days…Listening to stockmarket yo yo..Should sell, should wait…WHo knows really what to do. We had lost about 70 % now it is only 40%..We almost feel rich. Just kidding. There is way too much advice out there, and it is difficult to decide which way to go…We all basically need money to feed,cloth and shelter ourselves…We have all been willing to make changes to provide these necessities…However there are many unfortunates out there that are at the mercy of life.

  2. admin says:

    Carol,

    Thanks for taking the time to comment on my post.

    I agree we are all nervous and should be. Our politicians still get paid whether they are successful or not in stimulating the economy.

    David

  3. interesting post. I would add that people need to learn a simple way to identify up and down trends. There are hundreds of ways, pick one a stick to it. The simplest is by far a moving average. Just look at a chart of any stock market index, plot a 200-day simple moving average and you will see that being in cash when the price of index is below the moving average and getting long when price is above the moving average would have saved you thousands of dollars during prolonged bear markets such as we are in right now. Using just this simple method you would have avoided all of the carnage in 2008. I have been out of stocks since Dec 2007 using a similar method.

  4. admin says:

    James,

    Once again thank you for your comments and support for my blog.

    The 200 Day moving average is the light switch to staying in the market or not. So even if Baby Boomers know nothing about investing they should make sure their financial planner talks to them when they see a stock or the market move below this moving average.

    Then plan accordingly to avoid large losses and minimize risk.

    David

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