Protect Your Nest Egg with the Teeter Totter Principle

The Teeter Totter Principle is all about using a “seesaw” to balanceThe Teeter Totter Principle to Protect Your Nest Egg your Nest Egg’s cash and investments. Greg Heiple a financial planner, created the Teeter Totter Principle for managing your Retirement Nest Egg after seeing what happened to some of his clients in the 2000-2003 stock market down-turn. He gives an example of of a couple retiring in 1999 and doing all the recommended things with their Nest Egg but ending up losing 30% of their Nest Egg by 2003. He realised there must be a better way to manage his clients Nest Eggs in retirement. His research led to the creation of the Teeter Totter Principle.

Don’t be fooled by its simplicity. It is a great tools for protecting your Nest Egg in Retirement.

The Teeter Totter Principle has several benefits for Retirees:

  • It separates cash or fixed investment assets from risk-based investments like stocks.
  • It allows you to decide how much of your Nest Egg you want exposed to risk-based investments. This sets your balanced objective.
  • It makes it easy to see if your strategy is out of balance because you will have too much cash or to much in risk-base assets.
  • It forces you to buy low and sell risk-based assets when they are high.
  • It accepts that a retiree still needs to invest in risk-based assets to ensure income to offset inflation is achieved.
  • It leaves you with plenty of cash reserves from which to draw a pension even whilst markets are down. So you don’t have to sell risk-based assets at fire-sale prices.

Greg has created a free Teeter Totter Game and an online video that explains how to use it. He stresses the importance of balance when investing your Nest Egg. As a Baby Boomer for me it is also peace of mind. You need to be comfortable with how much of your Nest Egg you are prepared to expose to risk-based assets. Play the game, it is fun but more than that it will teach you a lot about yourself and your risk comfort level.

Don’t forget the number one rule for retirees is protect your Nest Egg against large losses in retirement. The Teeter Totter Principle is a simple system that makes it easy for you to do just that.

Technorati Tags: ,,,,

6 Responses to “Protect Your Nest Egg with the Teeter Totter Principle”

  1. […] is where Greg Heiple’s Teeter Totter Principle can come in really useful. Using it can keep you on the right side of the market and in balance and […]

  2. […] I believe you should not have your risk-based assets mixed with your safe assets. This is sold as diversification by the financial industry, but to me it is a means of hiding stock […]

  3. […] Maintain the Risk/Safe Asset Balance that I am comfortable with using the Teeter Totter Principle […]

  4. […] Heiple of The Teeter Totter Principle has just released a new book call the BalanceZone I have been reviewing over the […]

  5. […] is the creator of The Teeter Totter Principle which I have already mentioned on this blog as being an excellent tool for understanding and […]

  6. […] annuities available to US citizens. Let me state I know very little about annuities so I asked Greg Heiple of BalanceZone (Teeter Totter) fame and a US-based financial planner whom I respect, to investigate this for […]

Leave a Reply

CommentLuv badge