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So, if stocks were going down, bonds would be going up, which was a good thing. Right. And that would offset or mitigate risk. That’s called hedging in a portfolio, right? Most people don’t know that. That’s hedging risk. Okay. But those hedging models are not working right now. Because
You get this false sense of confidence when you get returns and you win, and you win, and you win. And you’ve started to really start to think like, Hey, I’m never gonna lose, right?
We try to get their income to be the same or more in retirement, because we find that they spend more, and they might have less monthly income. But the As Need Withdrawals, because of the trips and everything else they want to do, they actually will spend more money.
Obviously, when you’re talking about health and wealth, we talk a lot about life insurance in life, if you will, because you want to insure what’s important to you. Where do you use life insurance in your practice? And how does that fit in with overall wealth?
Most people will always choose that the purpose of that money, the number one goal, that money is to provide income. But then when you look at their portfolio, it’s not really invested for income, it’s invested for growth, it has a lot of potential risk if the markets go
You have to have asset classes that are non-correlated to the market that have the ability to grow, but not lose money. And so that really helps when you’re building a retirement plan to have a little bit of a hedge against that market risk. And people don’t realize how
Most people are gamblers. If you ask most people, you say, tell me a little bit how you’re invested, they’re probably going to show you 401k statements, IRA statements all invested in the market. Those people are gamblers, they’re rolling the dice with 100% of their retirement savings.
The real question isn’t whether or not you know, rhetorical question isn’t how much more money can you lose? The better question is, what’s the probability of success with the current loss that you’ve taken.
In the world that we live in today, where you have most people retiring without a pension, the first step for any retiree is to protect the retirement lifestyle by creating their own private pension.
