S3E24 – Four Principles of Retirement Investments

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In this insightful episode, we explore the four fundamental principles to consider when planning your retirement investments. We break down the essential steps to ensure your financial security and peace of mind as you approach retirement. You can survive when the market twists and turns and throws you loose and you think that things are coming apart.

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Key Highlights

1. Expect a Balance Between Extremes

• Key Point: The worst-case and best-case scenarios are equally unlikely.
• Discussion: It’s important to remember that the truth will typically fall somewhere in the middle. Both the world and the markets have faced and survived numerous challenges. Pausing and reflecting on this can help mitigate fear and anxiety about future investments.

2. Tune Out the Noise

• Key Point: Focus on your long-term plan and ignore short-term market fluctuations.
• Discussion: When you hear negative news and feel emotional, it’s crucial to have a solid foundation of safe investments. This allows you to stay calm and collected about your long-term retirement account despite current events.

3.  Growth Periods Always Outweighed The Bad Times

• Key Point: Essentially, the average bear market runs about 14 months with 36 % declines, but the average bull market runs almost six years with a cumulative return of almost 200%.
• Discussion: There are going to be bad times, but also there are some really good times. So don’t forget about those because that’s what drives the growth.

4. You Can’t Avoid Investment Risk and Expect Higher Returns

• Key Point: The more risk you take with your portfolio the higher we expect your return to be over time.
• Discussion: You can reduce your risk, you can hold more in cash, and you can mix more bonds into your portfolio, but you’ve got to expect then that your return will be lower over time.

Listener Feedback

We encourage our listeners to reach out and share their experiences or questions about retirement investments. Email us at info@srbadvisors.com.

Conclusion

Planning for retirement can be daunting, but by adhering to these four principles, you’ll be well on your way to building a secure financial future. Stay informed, stay calm, and always keep a long-term perspective.

Thank you for tuning in! Don’t forget to subscribe to our podcast for more expert advice and insights on retirement planning.