Target Asset Allocation: Moderately Aggressive
I can’t seem to avert my gaze from the balance on my retirement accounts. I know that I’m young and that I have plenty of time for the market to regain speed, but I am still amazed to see thousands of dollars wiped out of my accounts in a matter of days.
My husband and I are still contributing to our retirement accounts and we haven’t changed any of our allocations or sold any stock or mutual funds. We’ll hang in there and wait until the market rebounds, which it is inevitably bound to do.
As I look at the decreasing balance I can’t help but think of a financial advisor I met with a year or two ago. He said a lot of individuals invest too aggressively. He said most investors think they can stomach a very large storm, but in truth very few can bare to see their hard earned dollars dwindle before them.
He tried to convince me to think about paring back our holdings. He wouldn’t give me any specific information on stocks or mutual funds unless I paid him, but he did tell me too think long and hard about targeting a moderately aggressive portfolio. He said, “what if you saved $1 million and then watched it shrink in size by half”.
Well we don’t have a million dollars in our accounts, but I will admit that it is harder to watch those accounts shrink then I thought it would be.
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