Quote:
Originally Posted by Yorio
Depends on your age. If you are 80, perhaps not a bad idea to cash in but at 60, one may need to rethink. This is no full proof either since you may live to Syd Ceaser's age or better. Assuming your children are taking care of themselves well and said to you, you enjoy yourselves, you deserve the golden years. Even with financial planners, I went through Dot.com bubble and financial meltdown. No financial planners will say to cash in even if they know you are dying tomorrow. The most you can expect is to go conservative though that has disadvantages too. In nut shell, don't know the answer. When dentist recommends something to my teeth, I say to him not to make it last too long. Ideal is to deteriorate when I croak. It's same thing with financial advice. Can't do it. sigh.
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Boy, I can relate to that about financial planners. In mid 2007, about a year before retirement, we went to a fee-only financial planner. First, he ran a simulation that used a 6% average stock market return, and predicted that our savings would last (95% confidence). Then he recommended a portfolio of mutual funds, containing low-risk dividend paying stocks. Guess what, almost all financial business. Since I was still hurting from the tech bubble, I only invested about 1/3 of our savings. Good thing, because we retired on the eve of the financial meltdown.
Even the best and well-intentioned advisers still used programmed standard solutions for standard client groups. And, the standard portfolio for retirees is still heavily weighted toward equities, on the premise that stock yields are the only thing that keeps up with inflation.