Dean Barber of Barber Financial Group said, “Buy and Hold is Outdated“. He adds, “you should remember to take profits and redeploy them into lesser-risk, low-expectation areas”.

You can read his article on Yahoo Finance called, “Protecting Your Nest Egg in Recession” written by Laura Bruce from Bankrate.com.

In keeping with my own beliefs this is the right strategy we Baby Boomers need to adopt in retirement. It makes no sense to me to sit and watch my nest egg lose 40% of its value and then be told I should wait 5-7 years for it to come back - when I need it right now!

The article also talks about the need to have a written plan and to know when you will exit the market in a downturn. We all tend to focus on returns and ignore risk. The need to avoid large losses entails assessing the risk in any investment and deciding what action we will take if the investment does not work out.

Buy and hold is not the answer when in retirement. We need to use defensive strategies to protect our investment and keep out nest egg safe. The returns in a bull market will not be as good, but the losses in a bear market could be substantially less.

This will leave you with more money to earn returns when the market turns bullish again. You won’t be recovering your losses from the recent bear market. Remember most Baby Boomers who retired in 2000 have not recovered their nest egg yet and may never recover it as they draw a pension.

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The Pension Research Council stated that Investment Advice is misleading and can be potentially harmful to investors. This is in their report “An Analysis of Investment Advice to Retirement Participants. They also talk about escalating annuities that protect us against large losses. Could this be the Holy Grail for Retirement Income?

At last I have found something that begins to make sense regarding a way to protect our nest eggs and avoid large losses in retirement. A report written by Zvi Bodie entitled “An Analysis of Investment Advice to Retirement Participants” gives a real insight into what we should be demanding of the financial planning industry.

Don’t let the title put you off - this is really valuable information and a “must read”. Here are the highlights, but I urge you to download the 27 page PDF report and read it thoroughly. Its only 13 pages of text as the rest is graphs and tables.

To all those Baby Boomers who responded to the Survey on Baby Boomers and their Retirement mentioned on a post on the blog The Survive and Thrive Boomers Guide and are not sure what steps to take next - read this Zvi Bodie’s Report. Take a copy with you to your next financial planners meeting and go through it with them.

Here are some of the highlights that should make you want to grab your free copy to discuss with your financial planner.

Zvi Bodie states: Read the rest of this entry »

This eBook is all about how your Nest Egg can be taken from you in retirement unless you learn how to take control and protect it. Fees from Financial Planners can seriously reduce your Nest Egg in the long term. There are many other things too which are explained in this eBook that will help you take control of your Nest Egg.

At less than $US10 you will be better informed than most financial planners about how to manage your Nest Egg in Retirement. It is an easy read and gives plenty of information for you to use and many places to go on the Internet to get more “no-hype” information on what you can do.

John P. Greaney of The Retire Early Home Page website has just reviewed my ebook today 22nd April 2008.

You can read it at Retire Early Book Review.

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