The dawning of another new year marks the time for financial pundits to make market predictions. But if you’re 55 or older and someone who usually listens to the media’s forecasts and strategies, it might be time to consider not following traditional investment management advice — primarily because it focuses on market returns.
For someone who's nearing retirement age, there’s not nearly as much time left to weather market dips. If you're in your 20s or 30s and have a 15- to 20-year time horizon, sure, don't worry about it. Just keep working and saving. But if you're 55 to 65, it’s wise to approach your investing differently. Look at the potential downside this way: At this late stage of your working life, could you really withstand a 30% to 50% hit in the market?
