What Do the World’s Deadliest Animals Have to Do with Investing?

BiggestKillers_final_v8_no-logoAs much as we all like to think of ourselves as rational, occasionally we worry about things we probably shouldn’t. Here’s an example: what worries you more, getting bitten by a shark or a mosquito? If you said the shark you might want to think again.
 
Check out the infographic on the World’s Deadliest Animals which shows that although 10 people a year die from shark attacks, 725,000 die from mosquito bites. Sometimes when we focus on the wrong thing, it causes us to make poor decisions, including with our investments.
 
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Help Your Clients Avoid Being Bit by Their Own Behavior

BittenOn a recent routine run I got the surprise of my life when I was bitten by a rattlesnake. My experience that followed made me reflect on some similarities to investing.
 
Do you know what you’d do if you were bitten by a rattlesnake? Your first instincts might be to apply a tourniquet to the bite area or attempt to suck out the venom from the bite area. But either of these could actually make things worse.
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Retirement Planning – Taking Control During Uncertainty

Floor-Leverage Rule Spending Simulation1
 
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Total assets in individual retirement accounts and defined contribution plans have grown more than 400% over the last 18 years from $3 trillion in 1995 to $12.4 trillion in 2013 according to Investment Company Institute (2014)2. More importantly, these assets as a percentage of the total retirement market have grown to 54%, which indicates that the responsibility of managing investments is shifting towards individual investors. The need to assist these individuals with managing their retirement assets is growing. Continue reading