Who Can We Trust with Our Nest Egg in Retirement?

The question we should ask now is, “who can we trust with our nest egg in retirement?” Note I said “Nest Egg in Retirement” NOT “Retirement Nest Egg”. The real danger is when we are in retirement. Trust is more important than safety, safety more important that risk and risk more important that reward in retirement. That’s the natural order of things.

After the subprime debacle and a looming potential disaster in the credit derivative market if any one ever tells you to invest for the long term and hope the market doesn’t drop, you need to bail them up and throw them out the nearest window. They do not have your interest at heart.

If this person came to your door and asked for all your money and said they would invest it in assets that might drop 50% in value but you will still pay them 2% a year regardless, would you even let them in your front door? Then why do you go to their office and just hand over your nest egg without so much as a thought?

Often it is because you don’t have a large sum of money to start with. It is only as it gets larger over time that it becomes a problem. But by then you may have been through several market downturns, and it always comes back. The early market crashes you don’t even know about because your nest egg is too small and you are too busy living life. As you get older you become more aware but you are not concerned because it happened a couple of times when you were young and the market came back. Besides you can replenish it from your wages or salary. There is still plenty of time you tell yourself.

As you approach retirement you start getting concerned about your nest egg. But they impress upon you the need to buy and hold, buy and hold, buy and hold dummy! You’ve been through market downturns before and it always returned. You are now conditioned to accept this as fact.

What has changed though is you are no longer filling your retirement bucket after they let it get emptied by the market yet again. So this time they can’t use your money to replenish it after they put holes in it. And you no longer see it as a retirement nest egg you are accumulating for sometime in the future. You need your nest egg now as money to live on and suddenly it takes on a whole new meaning . You realise it is your money and what the hell are they doing with it. Don’t they know you cannot afford to lose it. It starts to really get to you in the gut now. You lie awake at night knowing your gut is right and they are wrong. It’s telling you to be afraid and you know you should be. But it will take super human strength on your part to wrench control of your nest egg back from people who have had the use of your money for 30 or 40 years. They even think it is their money to do with what they will.

What ever happened to human intuition. Before we had all these Wall Street experts advising us, we had to make our own decisions. We learned from our mistakes and we got better at it over time. As we got older our experience taught us to be more cautious. We realise we have lost our ability to believe in ourselves and make our own decisions. So now we just leave it to the “experts”. We tell ourselves, it’ll all work out in the long run, won’t it?

These are the same people who sent Bear Stearns to the wall and have almost broken the back of Lehman Brothers, a company founded in 1850! They are the ones that have lost billions and billions on paper and have sent share prices tumbling. But they have taken their $35 Billion end-of-year bonuses in real dollar whilst they invested our nest egg money in the worthless shares of the companies they have destroyed.

Are these the people you want to have looking after your retirement nest egg for another 30 years? They have betrayed our trust too many times.

We must demand that the financial system be changed. They must guarantee our capital before investing one dime. They must guarantee to make good any losses before they pay themselves any bonuses in future. Until they do we should withdraw our capital. But is this likely to happen soon? No.

Therefore it is because it is unlikely to happen that we Baby Boomers need to take control of our nest egg for the future. That doesn’t mean we should not use their services. Many financial advisors think like I do. They believe their job is to protect our retirement nest egg and help us manage it in retirement. We have to find these people and use them. But at all time we have to be in control.

It is my sincere believe that if Baby Boomers do not learn how the wealth management industry works and learn to take control of their nest egg in retirement it may end up costing them a large portion of that nest egg in retirement. It may not happen with this market crash or the next or even the next. But it will happen if you put your trust in their buy and hold mentality. At the same time their fees will slowly eat away at what is left. This Blog is dedicated to providing information that educates and empowers Baby Boomers to confidently take charge of their nest egg in retirement.

Back to the question I start with. Let me ask you who can you trust with your nest egg in retirement? There is only one person -YOU. So learn to do just that.

One Response to “Who Can We Trust with Our Nest Egg in Retirement?”

  1. […] admin wrote an interesting post today onHere’s a quick excerptThe question we should ask now is, “who can we trust with our nest egg in retirement?” Note I said “Nest Egg in Retirement” NOT “Retirement Nest Egg”. The real danger is when we are in retirement. Trust is more important than safety and … […]

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