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Baby boomers should avoid making emotional investment decisions 2010-06-08 Retirement planning can be a stressful for some older adults who are concerned that they may outlive their savings. However, making rash investment decisions during periods of market volatility may jeopardize an adult's retirement income, cautions retirement planning specialist Derrick Kinney. "Emotions can be the greatest enemy of the stock market investor," Kinney said. "Failing to manage your money emotions is often what separates those who acquire wealth and those who chase wealth." Kinney advises retirees to first realize that they cannot control stock market volatility, which is natural, but they can control their emotions. Before making hasty financial decisions, Kinney suggests that investors apply the 24-hour rule. Waiting 24 hours before making a rash investment decision will give the retiree time to let their emotions settle and view the overall situation from a less stressful state of mind. Market ups and downs are a natural occurrence. Making premature decisions, such as pulling out of an investment every time their stock dips, can leave retirees out of benefiting from long-term gains. Retirees who may be skittish about their investments should consider consulting an advisor or financial planner for assistance.  |
