Comments on: Investing for Retirement? Don’t Ignore Your Emotions (Part II) http://wealthpilgrim.com/investing-for-retirement-dont-ignore-your-emotions-part-ii/ WealthPilgrim.com -No Money Worries. No Matter What. Wed, 30 May 2012 00:03:08 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Neal http://wealthpilgrim.com/investing-for-retirement-dont-ignore-your-emotions-part-ii/#comment-2261 Neal Wed, 07 Oct 2009 17:07:21 +0000 http://wealthpilgrim.com/?p=11537#comment-2261 Evan, My fear is that Denise' "comfort level" w/shift and that's what I'd like to help her avoid. W/regards to annuity....you bring up a really powerful point. I fear you are right. Most people (advisers and clients) tend to ignore facts when they collide with their beliefs. People find it almost impossible to say "I WAS WRONG" and that's too bad. Again, I am not a fan of annuities generally. But there is no question that the annuity holder from last year did better than the stock investor - even with the recovery this year. Evan,

My fear is that Denise’ “comfort level” w/shift and that’s what I’d like to help her avoid.

W/regards to annuity….you bring up a really powerful point.

I fear you are right. Most people (advisers and clients) tend to ignore facts when they collide with their beliefs.

People find it almost impossible to say “I WAS WRONG” and that’s too bad.

Again, I am not a fan of annuities generally. But there is no question that the annuity holder from last year did better than the stock investor – even with the recovery this year.

]]> By: Evan@myjourneytomillions http://wealthpilgrim.com/investing-for-retirement-dont-ignore-your-emotions-part-ii/#comment-2260 Evan@myjourneytomillions Wed, 07 Oct 2009 15:45:57 +0000 http://wealthpilgrim.com/?p=11537#comment-2260 Neal, I think it is great that you bring it down to a risk question, because that is what it is! If Denise is high flying crazy chick betting it all on black and screwing consequences then yeah keep with equities, if she is losing sleep scared - get out of equities for the most part. However, my question comes back to...How many wealth managers would have offered her the fixed (or even the dreaded variable, with the added benefits discussed in your great post last week) annuity to begin with? or how many would have kept with the - I hate annuities? Neal,

I think it is great that you bring it down to a risk question, because that is what it is! If Denise is high flying crazy chick betting it all on black and screwing consequences then yeah keep with equities, if she is losing sleep scared – get out of equities for the most part.

However, my question comes back to…How many wealth managers would have offered her the fixed (or even the dreaded variable, with the added benefits discussed in your great post last week) annuity to begin with? or how many would have kept with the – I hate annuities?

]]> By: Neal http://wealthpilgrim.com/investing-for-retirement-dont-ignore-your-emotions-part-ii/#comment-2259 Neal Wed, 07 Oct 2009 14:53:47 +0000 http://wealthpilgrim.com/?p=11537#comment-2259 Daniel, I agree with the logic of your comment. I also have experienced situations where folks get caught up in the moment. I think it's really important to keep having this discussion so folks remember the trade-offs. Sometimes, I think we have built-in "forgeters". Daniel,

I agree with the logic of your comment. I also have experienced situations where folks get caught up in the moment. I think it’s really important to keep having this discussion so folks remember the trade-offs.

Sometimes, I think we have built-in “forgeters”.

]]> By: Daniel Packer http://wealthpilgrim.com/investing-for-retirement-dont-ignore-your-emotions-part-ii/#comment-2256 Daniel Packer Wed, 07 Oct 2009 01:15:30 +0000 http://wealthpilgrim.com/?p=11537#comment-2256 To answer your question "Will she get greedy when the market takes off?" I think Denise needs to have a goal, a certain amount of money at which point she will be happy with her situation and switch to a more conservative approach. Once she reaches that amount, she should be changing her investments slightly. She has seen what market volatility can do, so she should be looking to reach her goal, not exceed it. Once she reaches her goal, if she still feels that there is more to be had in the market, she can use a portion to take risks, but should not put a significant of her money in stocks. To answer your question “Will she get greedy when the market takes off?” I think Denise needs to have a goal, a certain amount of money at which point she will be happy with her situation and switch to a more conservative approach. Once she reaches that amount, she should be changing her investments slightly.

She has seen what market volatility can do, so she should be looking to reach her goal, not exceed it. Once she reaches her goal, if she still feels that there is more to be had in the market, she can use a portion to take risks, but should not put a significant of her money in stocks.

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