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“Darn, My House Didn’t Burn Down”

That is the attitude that we get sometimes from people who complain that their investment portfolio is conservatively invested when the market goes up. This Fear of Missing Out (FOMO for short) is another version of greed. Our #1 rule in preparing a client’s portfolio for retirement distribution is to take no more risk than is necessary. The second rule is to manage the risk of having to take money out of a portfolio when the stock market is down. Both of these guidelines cause us to recommend a conservative portfolio at times. And for a client to hold cash. And then when the markets don’t go down, some clients complain because they missed out on big market increases. It’s a little like complaining that your house didn’t burn down because you have house insurance. Keep this in mind when your advisor tries to protect your portfolio against a major market downturn as you near retirement.