Finance “What if I do nothing?” Some suggest that the best way to deal with economic and investing risks is to do nothing – by “tuning out the noise” or “buying and holding” forever. That’s fine but, in extreme cases, this can lead to a form of “investment paralysis” in which the investor is reluctant to take any action, or make any financial changes out of fear of making the wrong decision. That’s rarely a good way to ensure long-term financial success. To deal with this “what if,” it’s a good idea to set a regular schedule for doing a “deep dive” into your finances: say, semi-annually or perhaps quarterly. No, you don’t need to read the business section every day, but you do want to be aware of the goings-on in the companies in which you invest, and in the market overall. You’ll also want to have a passing familiarity with the issues that may have an impact on your portfolio. This doesn’t mean that you should always take action. But, at the very least, it will force you to think actively about your positions and about the risk(s) which you take on by continuing to do nothing. “What if I don’t takeenough risk? Another one of those seemingly strange questions – isn’t risk something that we should avoid? Instead of dealing with the stress and worry of the market, why not avoid it by shifting your portfolio into government bonds, GICs and similar investments with a guarantee? Tempting, but in a world in which people are living longer and inflation remains a threat, a portfolio that’s too conservative can pose a financial risk. By playing it too safe, your portfolio could fail to keep up with your withdrawals over the long term. Determining your ideal asset allocation is the key to dealing with this “what if.” Take a close look at your allocation between equities and other, “less risky” assets such as bonds, GICs and similar guaranteed investments – is it appropriate for your age and life expectancy? Are you overweight bonds, GICs and similar investments out of a fear of market volatility? If so, youmay simply be swapping market risk for another, more significant risk: the risk of outliving your money. “What if I can’t stop thinking about money?” A wise person once pointed out that money is a vitally important part of life – but it’s not the most important. Those who look to an ever-growing portfolio as a source of happiness are likely to be gravely disappointed. And, while it’s certainly prudent to think carefully (and regularly) about money and investing, there is a point at which such thinking becomes obsession. Never forget: money is a means to an end. And the happiness that comes with a large portfolio is nothing compared to the happiness that comes from an abundance of friends and family, and a rich, fulfilling life. So remember to take a break from the stock tables and read something else every once in a while (start with this fine magazine!). Take a trip. Cross an item off your bucket list. Take up that hobby – painting, collecting stamps, fixing old cars, whatever – you’ve always been interested in. Learn a language, or how to play guitar. Invite the family over for a BBQ. Whatever your passion in life, take time to pursue it. That’s the best possible return on investment. “What ifs” you probably never thought about The following are risks that are often overlooked – “blind spots” that can seriously and significantly derail your retirement planning, as well as your enjoyment of life. WHERE THE FUN NEVER SETS! uperstition unrise Luxury R.V. Resort Apache Junction 1-800-624-7027 Yuma 1-800-423-8382 Each Resort has over 3 acres of recreational facilities including heated indoor and outdoor pools and whirlpool spas, pickle ball courts, computer labs, 45,000 sq ft recreation & entertainment centers, fitness centers, 6,000 sq ft ballrooms, spacious bathrooms with showers, pet areas with fenced doggie parks, shuffleboard courts, tournament quality horseshoe pits, music and card rooms, libraries, shaded BBQ areas, laundry facilities, putting greens, driving cages, hair salons, cafés, ice cream shop, softball field, craft buildings, walking paths and RC car tracks. Other Amenities include free satellite t.v. hook-ups, WiFi, locked mail boxes and free forwarding services, free notary services, faxes & copies, billiards, bocce ball, quilting, massage therapy, numerous classes, dancing, line dancing, clubs, parties, seminars, events, dinners and so much more! X Large spaces X Full Hookups X 30/50 amp X Fully Professionally Staffed X Minutes from shopping & casinos The Finest 5 Star Resorts in Arizona Family Owned 55+ Parks for Over 30 Yrs Celebrating over 20 years as Good Sam Parks Top Rated Good Sam Awards for 2019 “Two Gated Resorts with full amenities to choose from with resort-style planned activities, events, and top notch entertainment!” Escape the cold winters and Enjoy ARIZONA Now Taking 2018 – 2019 Reservations CSANews | FALL 2018 | 35
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