5 Retirement Mistakes to Avoid – Investment FOMO

July 20, 2021

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5 Retirement Mistakes to Avoid: Mistake #1 Investment FOMO

The Fear of Missing Out (FOMO) does not only apply to teen social scenes. Retirees are susceptible too, but the stakes are higher…

Full transcript:

Alex Okugawa 0:00
The fear of missing out, it doesn’t just apply to teens in social settings, it can apply to retirees, and can be catastrophic to your investment portfolio. Stay tuned.

Alex Okugawa 0:22
All right. And so we are in our series, 5 Retirement Mistakes to Avoid. And of course, mistake number one is Investment FOMO. So I have a question for you. What are the chances that every single year we have the best performing investment?

Anthony Saffer 0:35
Yeah, not very good, right. And we do believe in the principle of diversification. And Michael Kitces has a great quote to paraphrase. He says, if you’re diversified, there’s always going to be something within your investment portfolio that you’re unhappy with.

Alex Okugawa 0:47
And of course, the problem with Investment FOMO is it’s chasing things that are performing well lately and letting go of things that have not been performing well lately.

Anthony Saffer 0:55
The truth is that many retirees abandon their well-thought-out investment plan, and they lose that consistency in that discipline, which is really required.

Alex Okugawa 1:04
So let’s think of a recent example, right? Let’s think of the tech bubble of the early 2000s. This is a classic example of investment FOMO. People were chasing companies and piling in with anything with “.com” at the end of it. And of course, we know how the tech bubble ended, it popped.

Anthony Saffer 1:20
Unfortunately, this happens much more often, even though regular cycles, where maybe it’s not quite as extreme as the tech bubble, the sooner that we can abandon that idea of the perfect investment plan, we can move forward towards success.

Alex Okugawa 1:32
Absolutely. So we wrote a complimentary guide 5 Retirement Mistakes to Avoid and the truth is, we want retirees to have a successful retirement.

Anthony Saffer 1:41
Yeah, these five retirement mistakes are easily overcome with recognition planning and then incorporating the right strategies to move forward.

Alex Okugawa 1:49
So we will link to our website below where you can download our complimentary guide 5 Retirement Mistakes to Avoid today.

Disclosures: https://onedegreeadvisors.com/solutions/#disclosures