Don’t Make A Titantic Mistake

Don’t Make A Titantic Mistake

April 23rd, 2012 // 1:23 pm @

One hundred years ago this month, the Titanic sank in the North Atlantic after hitting an iceberg.  There have been numerous theories about what happened, but the unmistakable facts are that the ship was not nearly as well constructed as most believed.  They assumed the ship was invulnerable, and that’s the same mistake too many educators make with their retirement plans.

Let’s go back to what went wrong with the Titanic.  For starters, the watertight compartments weren’t watertight at all.  A design flaw left a significant gap that allowed water to flow into the lower levels of the ship.  Because the compartments could not be sealed, the pumps could not work to drain all the water.

Then there’s the ship’s captain and his arrogance.  He was taking a shortcut at a high rate of speed, not the more southerly route across the Atlantic.  He was trying to set a trans-Atlantic crossing speed record and, in doing so, failed to heed the navigation charts. 

And finally, there weren’t enough lifeboats, probably because they didn’t think they would ever need them.

Some of you may also be experiencing close calls with their retirement plans and don’t even know it.  Your “Titanic” plans may sink if they’re not carefully constructed through the process of asset allocations and discussions or reviews with your agent.  Many people may not make adjustments in time to avoid devastating financial icebergs.  Others may fail without sufficient diversification, making sure there are enough lifeboats to rescue poor investments. 

Others will survive through a matter of timing and not being in the wrong place at the wrong time.  But do you really want to rely on good fortune alone?

Don’t allow your retirement plans to be built on a Titanic platform of false security.  Set up regular reviews, and discuss diversification and asset allocation.  Work with your agent to make mid-course adjustments on your voyage to retirement, if necessary.  This may help avoid the financial icebergs that can sink your future.

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