It has been a rough couple of years for baby boomers on the brink of retirement. The recession hit in 2008, and many were left wondering how to recoup their nest egg. Although we are still in a down economy, older Americans do have options. Moving much of your retirement savings out of risky options like the stock market to safer options like indexed annuities may be something to consider.
An article from Green Banner Publications states:
Discourage risk. The knee jerk reaction when one loses money in the market is generally one of two things. Some investors immediately want to pull all of their money out of the market, while others want to take on more risk. The latter is similar to someone losing money at a casino and continually doubling their bets in an effort to recoup their losses with one lucky hand. Unfortunately, there is no lucky hand when it comes to the market, and adults should discourage their parents of taking on riskier investments to recoup their lost nest eggs. Regardless of how much a person may or may not have lost during the recession, the rule of thumb that investments should grow less risky as we grow older still applies.
Be sure to check out other tips on how to deal with recession-related financial loss in the full article.