Broker Check

What is Investment Paralysis?

Many investors experience a condition that we in our firm call “investment paralysis.” It can cripple you from taking the appropriate action for one of the most valuable assets you will ever have – your retirement savings. When it comes to retirement, many people tend to “put their head in the sand” and rely on HOPE or LUCK − two of the most dangerous retirement words that exist. After 35 years as a financial advisor, I can tell you from experience that hope does not work, and there are simply too many moving parts to expect a successful retirement by basing your financial situation on luck.

Once you decide to retire, you will no longer receive a pay check. Your retirement plan should then change from saving for retirement to conserving your wealth and a creating tax-efficient income. Planning for retirement requires a well thought-out and comprehensive plan, because keep in mind no one knows for sure how long you will need income so you can pay your bills.

So, how do you know if you have investment paralysis?

  • Are you relying on Social Security or your pension with no backup plan?
  • Do you know how much money you will need for your retirement?
  • Are you happy when the market is up and then worry when it is down?
  • Does your advisor move you in-and-out of the market to maximize returns and minimize losses?
  • Do you not worry about investment losses because you think they will eventually recover?
  • Do you think money magazines and radio/TV talk shows have the answers for your personal investments?
  • Do you rely on friends or relatives who are not financial advisors for advice or a “hot tip”?
  • Do you ignore your investment statements for fear of seeing more losses?
  • Are your low-interest bank accounts keeping pace with inflation?
  • Are you more concerned about a $50 error on a credit card than about much larger losses in your 401(k) or IRA?

If you are experiencing any of these symptoms, you are a candidate for our services. Please call our office today to schedule your initial, no obligation meeting. We may be able to help.

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