Baby Boomers realise they need to take control of their Nest Egg

Thank you to all those people, baby boomers and others who have purchased my eBook this week. Taking any action to get informed about your nest egg and learn about what you can do to protect it is a good thing.

At last the newspapers actually have articles talking about the danger this bear market could have on Baby Boomer’s Nest Eggs and hence their retirement plans.

This Blog is dedicated to pushing one theme for Baby Boomers in Retirement which is,

Rule #1- Avoid Large Losses in Retirement

Wall Street and wealth managers around the world have used your money to make themselves wealthy but overdone their greed and derailed their gravy train.

More to the point though their greed has significantly depleted Baby Boomer nest eggs right at the point in our lives when we cannot afford to lose large amounts of money.

As if that wasn’t enough they have destroyed the housing market too.

I don’t feel sorry for wealth managers in the least. But I am and have been extremely concerned about my nest egg for the last year. I have extended that concern to cover all Baby Boomers nest eggs because I know how hard it was for me to save for my nest egg.

I don’t want any Baby Boomer’s nest egg to disappear because some shadowy person called a fund manager who has about as much chance as we do of picking stock market winners, destroys our nest eggs.

I’m also concerned about the burden we Baby Boomers will put on the public purse if we don’t or can’t take care of ourselves.

There are still many Baby Boomers who fail to realise they need to take control of their nest egg or are at a loss about what to do about it. My eBook will show you how.

My eBook and blog will not help you make money. They are designed to help you stop losing money to the markets and to the wealth management industry. I want to try and put their greed and indifference to protecting your nest egg front and centre in Baby Boomer minds.

In retirement it is not about seeking high returns. Its all about capital preservation. Returns take second place to avoiding large losses and high fees.

The Wealth Management Model of investing in mutual funds used to mange 85% of Baby Boomer retirement nest eggs is broken, just like the credit markets. It may fix itself for another run up the greasy pole of paper profits. If it does that is an opportunity to get your money out.

I just don’t understand how we can all be invested in the same things, equities, property, fixed interest and expect to make real “bankable” profits. If we all want to take our money out at about the same time from the same investments the paper profits will turn into real losses. Simplistic yes, but it makes the point I think.

Instead of investing in real business that actually produced something the wealth managers invested in investments that allowed them to extract high fees and charges. This resulted in a high concentration of our nest egg in a narrow band of assets classes. So what diversification was there except within different funds within the same asset class. Is that how this model was designed to protect against risk?

The stock markets around the world are taking a hammering today. It seems there will be no respite until the US cavalry comes to the rescue once again to help the world out even though the whole world gorged on these toxic derivatives.

If your nest egg is in mutual funds right now and the losses are greater than 10% I think you have to hold on. Cashing out would lose you too much money.

What you need to do is accumulate as much cash as you can to pay yourself until these markets sort themselves out and hopefully recover some time soon. At least three years worth of pension should be in banks. Yes I suggest banks – plural.

In the US bank deposits of up to $100,000 are insured by the Federal Government. In Australia as far as I am aware we do not have any bank deposit insurance. However I do believe the government will step in to protect depositors just like they did in the US and the UK and now Europe.

If you have purchased my eBook and have large losses in your nest egg, use the information in the book to meet with your financial planner to take control for the future. Take just one hour to read it and you will know more about how money works in retirement than most financial planners. Put a plan in place to try and recover losses, put money into cash to pay pensions for 3-5 years. Make them earn their money.

2 Responses to “Baby Boomers realise they need to take control of their Nest Egg”

  1. I can see why your book is selling well..How timely!!!!! Congrats on the many sales…So far my book is selling..don’t know exactly how much for a while…Lots of marketing…Here is to continued sales…Carol

  2. admin says:

    Carol,

    I’m sorry for the slow response. Your comment ended up the the Spam filter.

    Thank you for your kind words. Yes, I may have caught the wave on this one.

    Good luck with your book too.

    David

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