The Bird’s Eye View:
Today we’re talking about classic mistakes people make that can have long-term impacts on their retirement plan. Find out how to avoid the three P’s – panic, politics and performance chasing.
We all want to avoid mistakes in retirement, but there are some classic ones you should look out for. On this episode of Your Retirement Elevated podcast with Scott Dougan, we’ll explain why you should watch out for the three P’s – panic, politics and performance chasing.
During the pandemic, there were some classic, behavioral mistakes people made. Market drops can be painful slides, but it’s important to remember that the market is not your portfolio. All of our clients are invested differently.
No matter how cool, calm and collected you think you are, the pandemic has caused some people to panic. That’s always the wrong response, as the market showed. It seemed dire, but it rebounded in many areas.
The second P to watch out for is politics. We don’t talk politics on this show, but we can talk about policy. Many responded to political fears during the election by liquidating their portfolios, but that was the wrong decision.
“When you let politics muddy your investment decisions, bad things can happen,” said Scott.
Finally, beware of performance chasing. Some people got out or stayed out of the market during the pandemic, but that was the wrong move. Remain true to your plan, even during chaos.
Listen to the full episode or use the timestamps below to find specific segments.
1:39 – Emotional decisions
4:05 – Market drops
8:32 – Panic
12:35 – Politics
19:33 – Performance chasing
Thanks for checking out the Your Retirement Elevated Podcast. We’ll talk to you again on the next show.
Scott Dougan, RFC, Investment Advisor – Contact