Green Retirement

Monday, September 15th 2008, and why is it always Mondays, may witness an historic stock market crash. Regardless, of whether the stock market collapses or not, it will be a bad day for brokers around the world, as nervous investors stalk them over the phone and in person.  Frightened retirees, will be hounding their brokers, demanding answers for their declining net worth.  All sorts of rationales will be offered, from wars to hurricanes, bust mostly the brokers will try and hide.

Hopefully you are reading this, while you are on hold with your investment firm, money manager, mutual fund company, stockbroker, or other affiliated members of the retirement industry, and before you begin screaming and swearing at everyone. I have some advice that may slightly calm your nerves.

1. First, it’s not their fault, brokers are not economists, and even most economists don’t understand economics.  Brokers learned some finance buzz words in college, and are more than happy to dazzle you with, the depth of their financial vocabulary.  Many of them are still paying off student loans, are just as scared as you are, and a large number will soon lose their jobs.

2. Think dollar cost averaging - Don’t stop investing.  Look at the Kanji symbol above - crisis = opportunity. Buy low sell high. Talk to your investment adviser about strategies to take advantage of a downturn in the economy.  If your broker can’t adequately explain a coherent strategy - find another broker.

3.  Asset Allocation - A Green Retirement long term asset allocation, of between 50-75% stocks and the remainder in bonds, does the best at extending your retirement savings.  Don’t allow yourself to be tossed between stocks and bonds, it is expensive and counter-productive.  Instead, check your investment asset allocation with your financial planner, and adjust your investment asset allocation appropriately.

Also remember, Green Retirement Planning asset allocation includes your house and property, which are of course an asset investment, but are largely ignored by financial planners.  For most Americans, their house is their biggest investment, and their greatest source of retirement savings.  Don’t congratulate yourself, if you haven’t lost money in the stock market, when your home value has fallen 30%. Your investment broker didn’t sell you your house, so no sense in blaming them, your real estate agent is now selling crap on ebay to survive.

If you are still on hold with your broker, you may want to read this Green Retirement Blog article, “Tips on surviving a recession in retirement.” And here are even more articles:

Recession in Retirement - Don’t Delay
How to Earn Big Returns in a Recession
Recession Proof Retirement
In a Recession Accelerate Your Retirement
Lost Your Job - Think Retirement
Retire in a Recession

Good Luck!

Full Disclaimer:  Green Retirement Planning does not offer investment advice, charge commissions, sell investments, or manage money.  Green Retirement Planning offers fee only retirement planning services to individuals, companies, and governments.  Learn more about Green Retirement Planning.