Issue 51.10
My Grandfather said: “It’s easy to make money at the livestock market. Just buy when it’s low, and sell when it’s high.”
Unfortunately, he lost his Wyoming ranch in the Great Depression, because the market was down when he needed the money.
So I asked my Dad “How can we predict?” He said “Trust me, when you need the money, the market will be down!”
Seems cynical, but there is some truth in it. When times are tough, as they are today, needs for money multiply.
Examples:
You decide to retire early to avoid a layoff.
Your son loses his job, and needs help so he won’t lose his home.
Your daughter needs $20,000 for a messy divorce.
Depending on where your nest egg is, you might have a very hard time getting access to your money right when you need it.
The most critical factor in your nest egg is Safety. It must be there for you, when you need it.
Too many people have been forced to delay their retirement for 10 years, or more.
This doesn’t seem like a big deal when you’re 40 or 50 and still full of energy. But when you’re 65, or over, and feeling your age, it is a very big deal.
Most people have plans for what they want to do in retirement. Things they’ve wanted all their lives, but couldn’t do because of the restraints of job or family.
They want to raise quarter horses, travel to exotic destinations, help their grandchildren with college, serve a mission, write a book, or climb that mountain.
What it’s about is Life, Liberty, and the Pursuit of Happiness, and your nest egg is the key.
In reality, your nest egg is your Liberty to decide what you want to do when you get up in the morning; to Pursue what makes you Happy; and to make what you want of your Life.
In real estate they say “Time is of the essence of this transaction.”
That is doubly true in retirement.
You need money to retire soon enough, and to last long enough.
Your nest egg must be there for you, when you need it.
Tony and Catherine Jensen are retirement financial advisors in St George and all of Utah and Idaho.