Every morning in the locker room I hear the same thing. People talking about how much money they just lost in the stock market. The problem is these people are OLD. I really want to walk up to one of them and ask if they were diversified or if the stock market was their only hope for retirement.
I'm fairly fortunate (read smart). I am extremely diversified. Yes my retirement statements are just as bad as everyone else's (except for a few of my wife's conservative income funds). However, I'm diversified in real estate (my paid off home) and my large stash of cash (CD's, etc).
What I can't believe is that someone who is obviously retirement age is still playing the market. Is that greedy, stupid or both?
I think many of procrastinate. We don't start saving for retirement until it's too late. Then we try to make up for it at the end. Stupid.
The market will be back, but will it be back in time for the old codgers in the locker room? I don't know, and nobody does. Markets are wild creatures and will do what they want (at least it's a good way of thinking about it).
So please, if you're nearing retirement age, consider your diversification. Are you all in the stock market?
My strategy is to eventually pull out a small sum each year and convert it to a cash equivalent investment. In this manner I won't be subjected to the outrageous highs a lows of the market.
Good luck to you out there and for God's sake, pay attention to what you are doing!
Tags Investing Investments Retirement Stock Market Stock Prices