My $2m retirement account has gone up only by 2% in the past year due to rebalancing I did out of panic and doubt. My question is , what are best alternatives to take in other to secure a comfortable retirement? I don’t want to fail after 22 years of working hard.
at a point like this, when the pressure is already on you to retire, its best recommended you seek the services of an advisor, as this allows you make smarter investing decisions
@ATscott this is huge! been looking at expertise assistance but kind of relaxed about it... could you please share basic info of your advsor, if you dont mind me asking?
I think that what's missed about the coffee example, is that a person can make their coffee at home for 20 cents a cup instead of purchasing it for 4 dollars a cup. So a person still enjoys their coffee but does not lose the joy of enjoying it just most of the cost of that pleasure. There are jugs of ready made gourmet coffee that contain 1.5 quarts that can be purchased for 8 bucks. There's a book called the "Compound Effect" on how small changes done over time have a huge effect from walking, taking dance lessons or cutting down on sugar.
The House can be tapped for cash using a margin account but it doesn't put money in a person's pocket (unless they rent out a portion of it) a house add costs. A person could live in a home that's as modest as possible and have the rest of their real estate exposure in REITS which do produce a significant cashflow. This helps to diversify the real estate allocation geographically. A REIT can also be held in a tax sheltered or tax differed account. Buffett uses insurance float and Coke dividends to invest in compounders. REITS and dividends can provide this kind of money flow to deploy.
