Retried wealth investors and those retirees trying to determine how to invest in retirement should be aware the global concerns have increased the correlation risk associated with investing. Retired investors are encouraged by the Wall Street System to broadly diversify their investments between several different asset classes. This may lead retired wealth investors to think that their portfolio is better protected than it really is.
Wealth manager Jeffrey Voudrie comments, "When the markets crashed in 2008, all asset classes were effected and cash was the only safe haven. That was because the traditional relationship between the asset classes (correlation) broke down and all the asset classes moved in tandem, defeating the purpose of traditional asset class diversification."
Retired investors and those with investments in retirement paid an especially high price in 2008 with many losing 50% of the value of their portfolios. Most were not able to endure the pain of those losses and exited the markets altogether. Thus they failed to participate in the market recovery that eventually began in March of 2009. Retired wealth investors need to remember those times and to use the lessons learned by taking a different action this time.
Wealth manager Jeffrey Voudrie continues, "There are two aspects to performance: gain and pain. Investors, especially those with investments in retirement are urged to focus more on the potential pain element instead of the gain one. There are times to increase risk and times to decrease it. This is a time that suggests prudence."
You can find articles written by Wealth Manager Jeff Voudrie on Seeking Alpha here: http://seekingalpha.com/user/1573711/instablog.
You can also view free educational videos from Mr. Voudrie's recent book "How Successful Investor's Tripled The Return Of They S&P 500" here: www.TheRetiredInvestorsSurvivalGuide.com.
Jeffrey D. Voudrie, CFP(R)Wealth Manager/Portfolio ManagerCommon Sense Advisorsjeff@commonsenseadvisors.com www.commonsenseadvisors.comwww.jeffvoudrie.comwww.TheRetiredInvestorsSurvivalGuide.comwww.guardingyourwealth.com
Common Sense Advisors is a boutique firm-we do not cater to the masses. Instead, we focus on providing a high level of service and active account management to a select group of retirees and near-retirees. Our small size allows us to custom tailor portfolios and management style to each client’s needs and comfort levels.
All information contained in this post is for informational purposes only and does not constitute a solicitation or offer to buy or sell securities or investment advisory services. While every effort has been made to offer the most current and correct information possible, inadvertent errors can occur and the specific facts of each individual’s situation may change the results and recommendations provided in this post. This information provided may also be affected by local, state or federal laws, rules and regulations. The accuracy, completeness or timeliness of the information contained in this post cannot be guaranteed. The information provided is not intended to serve as legal, accounting or tax advice and you are strongly encouraged to consult with qualified attorneys, accountants and other financial professionals for advice concerning specific matters before making any decision. Common Sense Advisors does not represent, warrant or guarantee, or assume any liability in respect of, results based on the use of the information in this post. All investing involves risk.
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