Let’s make a deal, but don’t play games
Written by Nolan Baker Mark Clair | | letters@toledofreepress.com’m sure you have seen the show. People dressed in all sorts of wild outfits make up the audience for a chance to be on TV and a chance to win big prizes. I had thought the show was no longer on the air, until I had a chance to take a quick break at a conference last week and saw Wayne Brady running the show. All kinds of people just waiting for their chance to be a winner were going crazy.
This lady dressed as a cat was holding a box that contained a surprise amount of money. She could either keep the box and open it up to find out how much money was in it or trade the box for what was behind door No. 2. In this case, she kept her box and someone else got what was behind door No. 2. As the camera scanned the audience, there was a guy dressed like a chicken, a couple dressed like the president and first lady, and I think I saw Elvis. Mr. Brady picked a lady dressed as a hula girl. Behind door No. 2 was a world-class vacation and a jet ski with a total value of $9,471. Now it was the lady who kept the boxes to find out if she made a good deal. The safe was opened and inside was $111.
Things could have turned out differently. I didn’t have a chance to stick around and watch the rest of the show, yet I remember the show from my childhood. The box could have contained $10,000 and behind the door could have been a donkey. Not knowing is what is so exciting about the show.
We are surprised at how many people make investment decisions like they are on the game show, often willing to trade what could be a pot of gold for a chance to get a bigger prize. In real life, when it comes to investments you get to look inside the box and see what is behind door No. 2 before you decide.
Many people make wild, often quick decisions based upon their emotions, acting almost like a contestant on the game show. They sell investments that are in the stock market when they are losing money and buy fixed accounts and then wait till “things get better” to buy back into the stock market. The problem with this is when it comes to retirement, it’s not a game and the choices can be devastating.
An investor should not act like a game show contestant. Review every option carefully before you make a decision. If it is safety and security an investor wants, learn about what safe investment options offer the highest potential return. A ton of options are available and a small 1 or 2 percent increase in earnings can make a major difference in finding money. To learn more, visit www.safemoney places.com. If the investor is comfortable with equity investing; the way to find the money is to look at how to cut out wasted fees and expenses. Cutting fees by one or two percent can be another great way to find the money. Use www.morningstar.com to check up on your equity investments. Or if an investor is considering switching from safe to risky investments or vice versa consider the pros and cons first. Before you make the move, make sure you get educated.
On the show, the contestant only gets a few seconds to make a decision. In real life, when it comes to planning a secure and peaceful retirement, take some time to get a better understanding of all of the options. Don’t be rushed into making a quick decision. Attend a local educational event and then do some homework — no chicken suit is required.
Got a question? Ask The Retirement Guys. E-mail us at letters@toledofreepress.com. For more information about The Retirement Guys, tune in every Saturday at 1 p.m. on 1370 WSPD or visit www.retirementguysradio.com. Securities are offered through NEXT Financial Group Inc., Member FINRA / SIPC. The Retirement Guys are not an affiliate of NEXT Financial Group. The office is at 1700 Woodlands Drive, Suite 100, Maumee, OH 43537.
