An investor is an individual, but many retirement plans bundle investors into groups, making broad assumptions about age and risk. Such canned “advice” has no personal knowledge of you.
Clients show us statements received from the administrator stating “Based on your age, the investments you have selected are too aggressive.” Many participants do not understand the market and how investment choices are likely to perform over time. They have an uneducated fear of “the market” and the administrator then adds to their lack of education and fear.
Anyone who invests to gain retirement financial security must take reasonable risk. The computer, or the “administrator,” cannot guide you through market cycles, or incorporate personal information, so it offers the same advice to everyone in your age group. That is bad advice for many. Such fear and lack of knowledge holds many people back from making good choices.
Your retirement options as a self-employed individual or an employee of a company may be the single most important investment you have for a healthy retirement. Search for sensible individualized advice that comes from an understanding of your underlying investment options. Work with someone who can guide you through market cycles, reducing the fears many investors experience.
Louise Googins
Googins Advisors