Part 3/8:
With the market showing significant growth recently, many retirees may feel tempted to time their market exits. However, successfully timing the market requires predicting both when to sell and when to buy back in—a challenging feat even for seasoned investors. Research shows that individual investors tend to underperform the market due to emotional biases, making them prone to making poor investment decisions.
Retirees should recognize that market fluctuations can influence their retirement income but necessitate a strategic rather than reactive approach. It’s crucial to acknowledge that while investments typically grow over time, they don’t always do so consistently year after year.