If you have been reading along with us (and if you haven't, you can easily catch up by checking the archives along the right side of the page), you would probably imagine that we think people have too much risk in their portfolio.
Unfortunately, this is not from what we think but rather what we know from many of the new clients that come to our firm looking for added safety. We get the idea from the factory worker in Lewistown who planned to retire at the age of 60, but is no longer able to. It comes from the 75 year old widow in Mifflintown who lost 40% of her money after her broker told her that her money was safe (it was only invested in 85% stocks). It comes from the retired couple in McAlisterville living on their investments and social security that now have 35% less income.
We can all benefit by having more safety in our portfolios. We have learned that the average person (and many financial professionals) lacks the ability to talk intelligently about risk. Instead, we counsel on what degree of safety is wanted in their retirement. Brokers tend to avoid the word safety because of their products' lack of it.
To hear the Smart Money Radio Show segment focused on this topic, Please Click Here! (about 7 minutes long)
To hear the full Smart Money Radio Show where Bruce discusses this topic and more, Please Click Here! (about 25 minutes long)
