Not the catchiest title, I know. And maybe it goes without saying. Most people are careful and cautious with their financial assets. But spend a few decades in the investment business and you will see some unfortunate circumstances. Sometimes a retiree will withdraw too much money and endanger their own financial security for reasons perhaps best described as "it seemed like a good idea at the time."
If your investments are your principal source of retirement income, withdrawing a large sum to buy a new sports car, take an expensive vacation, or to help your child put an addition on his or her house may not make financial sense. Think of it this way: Your investments pay your bills, much like when you were working your job paid your bills. I'll bet you were careful during your working life not to jeopardize your job - arrived on time, worked hard, paid attention. Now your assets are doing the work that you once did. Be careful with them, like you were when you were on the job. Keep your assets, grow them, and they will serve you well for a lifetime.
A last point on this: my focus is to advise clients on investment and tax matters. Whether someone buys a car or goes on vacation - that's their business, and my job is to help them do what they want with maximum financial efficiency. If you ask my opinion of whether you can afford to do X or Y, I'll offer it. But at the end of the day, there is one thing we at Brighton Securities never forget: it's your money. And we work for you.
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).