Protect Your Nest Egg in Retirement

Thanks for dropping by and taking a look at my blog. As the title suggests it will be all about how to protect your nest egg in retirement.

I’m not talking about all the financial wizardry spoken of by the Wealth Management industry. I’m talking about how your nest egg can disappear over time through things that have nothing to do with the Stock Market. It is my own experience that has motivated me to create this blog and to write an eBook based on Chicken&Egg2my research.

Why should you listen to me? That’s a good question and I hope I can answer it for you on this Blog over time and with my eBook.

First I am in semi-retirement and so my income has been reduced considerably. I do have enough of a nest egg for a reasonably comfortable retirement. At least that is what I thought. I have done my own investing for the last 25 years until last year when I decided to hand it all over to a financial planner via a WRAP account and Mutual Funds. Whilst I was nervous I liked my financial planner and trusted him so in November 2007 I handed over my nest egg to my chosen wealth management team.

I wasn’t looking to make a “killing” I told my planner. I was happy to protect my capital and make 8-10% if I could. This was very conservative I was told. It was strange at first but I wanted to spend my time doing other things.

After about six months the returns were virtually zero. When I asked what was happening I was told not to panic and that these things can take 5-7 years to show the long term returns of about 8-9%. When I said I don’t have 5-7 years to wait to find out the investments have failed it fell on deaf ears.

Next I started to feed my financial planner information I found on the Internet about retirement nest eggs and how long they will last under varying conditions. The response was I am investing for the long term.

I asked what it the market drops, will I have to draw less income. No draw what you want was the answer. Over the long term you will be okay.

So then I found more information about maximum withdrawal rates and nest egg survival over the long term. When I presented the results of my research into nest egg survival I was told – you are in it for the long term – don’t worry just start enjoying your retirement.

Each time I was ignored I went looking for more information about how a nest egg is likely to perform over the next 25 years – the time I am expected to live off it!

Remember we Baby Boomers are the first generation to be asked to manage our own retirement income and make our nest egg last at least 25 years. This has NEVER been done before on such a massive scale.

It was a most enlightening journey and took several months to eBook Protect Your Nest Egg in Retirementcomplete. I looked at hundreds of web sites and read many articles, web pages and blogs to get an understanding of what can affect my nest egg. I emailed several independent financial planners to get their views and found they confirmed my worse fears.

Right now I know many Baby Boomers have been watching their nest egg with concern due to the stock market downturn, and it is a real worry. But stock markets recover over the long term. The things I talk about in my eBook just keep “eating away” at your nest egg no matter what the stock market does.

You can download the FREE eBook by clicking on the cover. It will open in Adobe Reader in a separate Windows, so you can come back here after you have read “What Every Baby Boomer Should Know about Protecting their Nest Egg in Retirement” and add your comments if you wish.  

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