Another thought provoking article by Ernie McDaniel
We all strive to maintain a sense of peace in our lives. We want the comfort of the known. If we are wise, though, we realize that improvement involves change and change involves the unknown. In these uncertain times, a choice for change is all the more frightening…and all the more vital.
One cannot negotiate a winding and perilous mountain road by gripping the steering wheel in panic and hoping the way will straighten soon. Yet it is with that fearful, frozen grip that many people guide the destiny of their retirement nest-eggs. Want to stomp on the brakes, come to a dead stop, wait for a new road to be built? Impossible. The world does not wait. Inflationary and deflationary forces do not. Dangers do not. Neither do opportunities.
In travel, different vehicles are required for varying terrains, cargoes and destinations - a four-wheel drive to get through the woods, an eighteen-wheeler for a cross-country transfer of cargo, a ship for a leisurely cruise among the islands of the Caribbean, an airplane for the quick trip to one island. So, too, are a variety of investment vehicles possible. Which one of them, or combination, is appropriate will depend on an individual's needs and goals.
What are your particular needs and goals? Not sure? Studies show that most people spend more time planning a two-week vacation than on retirement planning. Why? Possibly, it's because the downside of a vacation mistake is limited to a mere two weeks of expense and misery. Fact is, most people live in dread of making a much bigger mistake, one that will negatively affect their entire lives, and so they avoid making decisions of major impact.
But such avoidance is a life-altering decision in itself and potentially the greatest mistake of all. As the famous saying goes: “He did not plan to fail, he simply failed to plan.”
I often suggest that folks view retirement nest-egg decisions the same way they do decisions about moving from one home to another. Moving is no fun. However, the wisdom of a move is not determined by its brief stress and hassle but rather by the promise of long years in the new home - years of pleasure, of deep satisfaction, of fond memories.
The uncompromising truth is that the happiness and success of your retirement may depend on your willingness to make a nest-egg move now, one seeking less risk, maybe one seeking simplification of management, or perhaps one creating less tax. The necessary decision may cause you stress, may require enormous courage, but the rewards may last a lifetime. Are you willing to face hard reality, to focus on a plan that will address the challenges, to choose appropriately strong and reliable retirement vehicles?
Say yes! And say no to the most dangerous fear.
Ernie McDaniel is a Chartered Financial Consultant and President of McDaniel Financial. He can be reached at 318-798-9022.
