Episode 77: Why Aren’t My Investments Working for Me?
Have your question answered on the Money Wisdom Question Series!
Heath Grossman, CFP® here with the Money Wisdom Question Series. Today’s question is, “Why aren’t my investments working for me?”
Defining Investment Success
This is a very interesting question, and I think the path to finding the answer starts with defining what your definition of “working for you,” is. What do you want the investments to do for you? Are you comfortable with risk, with reckless abandon, with no regard for volatility? Or are you looking for more of a reasonable rate of return with a certain degree of safety? Identify what your expectations are of the investments, and ultimately, how the investments are allocated. Do they match that expectation?
Expectations vs. Reality
So I’ll tell you a quick story. One of our advisors sat down with his father-in-law not too long ago, and his father-in-law said, “take a look at this IRA statement. It’s terrible. It never grows and never does anything”. The advisor looked at it and he said, “you’re sitting in cash”. Ultimately, his father-in-law had no idea that the IRA he had was not in fact invested in anything. The IRA was just sitting in cash, and therefore not making any money. This story is an example of where the investor’s expectation was different from how the account was invested.
How A Financial Advisor Can Help
Many people will come to us, and they’ll say, look, this is what I have, is it the right thing for me? And that starts with a conversation around who are you as a person. What are your goals and what are your expectations for the investments? Are your investments making money? And then looking at the investments and getting an objective second opinion on it to see if everything in the right place. What is working well and what can be improved upon? Are your investments working well for you or not?
Thanks for joining me and I hope you found this information helpful!
P.S. If you enjoyed this topic and want to learn more, download your copy of our guide, “Building Your Fiscal House“.
Information presented in our podcasts is considered current as of the created date. Over time, some information presented may become stale. We recommend you consult with your Financial Professional before making any changes based on information contained here.
Johnson Brunetti is a marketing name for the businesses of JB Capital and JN Financial.
Investment Advisory Services offered through JB Capital, LLC. Insurance Products offered through JN Financial, LLC.
The guarantees provided by any type of insurance contract are based on the claims-paying ability of the insurance company.
Related Resources
-
Getting It All Together for Retirement
After a long, fulfilling career, the time has come to embrace the next chapter. You may have envisioned the age at which you’d retire since you began working, but it’s important to distinguish bet… -
Key Questions for Planning Your Retirement Income
Replacing your income in retirement is a significant undertaking that raises many important questions and requires careful planning. First and foremost, it’s essential to have a retirement income … -
Health Care Expenses in Retirement
Of all the expenses to expect in retirement, health care often makes up a significant portion of your costs. Monthly premiums, out-of-pocket expenses, and services not covered by Medicare can quic… -
Income Planning 101
You’ve spent the last few decades saving for retirement but are you truly prepared? To help address any concerns or uncertainties you may have, you need an income plan – one that considers every f… -
Frequently Asked Social Security Questions
Almost every American is impacted by Social Security in some way, so it’s no wonder that it’s one of the most frequently asked topics in retirement planning. When and how you start taking benefits… -
Maximizing Your Social Security Income
Social Security can serve as a safety net for many retirees, sometimes acting as a primary source of income. However, the program is highly complex with over 500 ways to claim benefits. Even one o… -
How Much Money Can I Spend in Retirement?
“How much can my spouse and I realistically spend in retirement at age 62 with $1 million saved?” Today’s hypothetical couple is asking the very question that most pre-retirees ponder when gearing… -
What Steps Should I Take If My Retirement Savings Fall Short?
One of the biggest fears today’s pre-retirees and retirees face is running out of money in retirement – but what happens when that once-distant fear becomes your reality? Today’s question addre… -
How Will I Receive Income from My Retirement Savings?
Today’s question centers around the core of retirement planning – how do I turn my retirement savings into retirement income? After decades of building up your nest egg, life after work introduces… -
What Should My Tax Plan Be at Age 65 with $1 Million?
Approaching retirement with $1 million saved is an impressive milestone, but turning those savings into a sustainable income stream requires careful planning. At age 65, many retirees face the cha…
