Investments, 401k’s and IRA’s are there anything left after the fall? Where are you now…
Many folks have been getting their retirement plan and investment statements in the mail or online for the last quarter. For some people in 2008 and 2009 this was a heart wrenching experience opening the envelope. Others just didn’t open it, thinking that if they don’t look at it, the news might change, with aging in the letter holder.
We are in 2010 and if you worked with your financial advisor any last year, you should have had some gains. If not maybe it is time to start interviewing for that position, it never hurts to have a second opinion.
This brings me to the point of my article this week. I will start with a question; did you know what your tolerance for loss was before you made your choices? I can answer that for the majority of people. NO, “I want my money to grow at a high rate, but I don’t want any risk” sound familiar. So when the 401k guy or gal or you we to your investment person we all just said “I want something less risky, but will grow. You pick it I don’t know what I am looking at”. Then we end up with a group of mutual funds or accounts that we really don’t understand. Some clients don’t care to; others could with just basic explanations. Many times the words like “conservative” and “safe” are thrown around when in all reality, it should be thoroughly explained what that means.
During conversations with many people over my career the same thing keeps happening. A company or an individual starts a retirement or investment plan and the beginning is great. The interest in the functional pieces of the plan is lost and after a year or two and contributions put in without regard to the individual’s or companies current financial picture.
Risk Tolerance changes over your lifetime; sometimes life events cause a younger person to become more conservative earlier. Then there are older people who become less conservative as they age. I have seen both in my practice and it never surprises me. It just reminds me that no one person should ever assume that they have to fit into a certain risk category just because of there age or life stage.
Talk to a qualified financial advisor to check in, and take a look at your risk tolerance today. You may be surprised what type of investor you really are.
Tommy Pietsch is a Financial Planner with the firm Lone Star Investment Professionals located in Central Texas. Tommy.pietsch@invpro.com or www.lonestarinvest.com or www.invpro.com
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Tommy Pietsch Trusted by loyal clients for more than two decades, Tommy Pietsch doesn’t just aim to build financial security. He aims to build lifelong partnerships. His diversified client base includes both individuals and families developing personal retirement plans and small business owners seeking the best succession strategies Full Profile & Contact Information...
