A common retirement tension
“Many Boomers grew up with financial uncertainty, learning to save and sacrifice to protect themselves and their families. Even after decades of financial success, those habits don’t just disappear. The idea of ‘spending down’ their wealth, even intentionally, feels unnatural and irresponsible. There is an internal tug-of-war between their stated desire to enjoy their wealth and their deeply rooted fear of running out.”
– Financial advisor Rick Kahler, in a 2/18/25 article on Advisor Perspectives, about the difficulty many retirees have with spending from retirement portfolios. Read more at bit.ly/41r4VzO.
A little bit more
“Many financial ideas are tough to embrace. But perhaps the toughest can be summed up in one simple word: enough.”
– Jonathan Clements, in a 2/15/25 post on his Humble Dollar blog. He noted there is much good in striving, but a sense that there’s “never enough” can prompt investors to take on too much risk and also, interestingly, lead many retirees to spend too little. Read more at bit.ly/4i7G4GK.
Nothing good happens overnight
“Research has noted the detrimental effect that the time of day, and the fatigue that usually comes after hours, has on our decisions. Research on trading behaviors supports this notion, finding that investors are more likely to purchase riskier assets and hot investments when trading after hours.”
– Morningstar’s Samantha Lamas, in a 2/14/25 article about Schwab’s recent rollout of overnight trading to all of its retail clients and why investors should take a pass. Read more at bit.ly/4gPjXnK.