As we round the bases of 2024 – surviving all types of stress from storms of all nature – I thought to comment on interesting key takeaways from our recent financial planning conference last month.
One investment session reviewed the actual composition of stock indexes and how they are rebalanced or reconstituted in various ways at various times throughout the year. It was a new take on the old phrase – simply index your investment and don’t “actively” manage your investment strategy. The conclusion of this is that your index fund invested to match a stock index may change in ways that you may not realize over time. Our recommendation is to review and understand what you are invested in, regardless of the label. Review of concentration of largest stocks by capitalization, earnings of companies in the index, and sector concentration may impact performance both up and down.
Another session discussed the four stages of retirement from Dr. Riley Moynes. While helping clients retire for many years, the first stage of retirement, or the “honeymoon” phase, seems to be the image implanted in our minds of retirement. Unfortunately, unlimited fun tends to get old and nearly everyone craves meaningful activities, relationships lost from prior work/careers, and the need for exercise of that muscle between our ears. The book listed below had some good points as well as the Ted Talk. Our Minnesota local columnist, Chris Ferrell, also discussed how to reinvent oneself in this new “phase of life”. I would recommend anyone in retirement to consider these authors to give you guidance on navigating this new stage of life to successfully get to stage four!
Dr. Riley Moynes: 4 Phases of Retirement...and the Psychological Challenges | TED Talk
Thanks, and Giving in this season is our last comment. We are thankful for our clients who have become close friends, and we hope our “giving” back to those less fortunate helps everyone along the journey of life. Enjoy your holiday season!
Jean, Kurt, Anders, Maggie & Molly