Retiring is like Rock-Climbing
Accumulating money for retirement can be a lot like climbing a mountain. Have you ever tried
There are basically two ways to climb mountains. With Way 1, the climber chalks up his hands, grabs some rock-climbing shoes with good grip and literally scales the face of that mountain in what’s known as a ‘free climb.’ With that method, there’s no gear or equipment hindering you, and you can scoot right up the cracks of the rock face, shooting your way up in a hurry. The only downside to all that freedom and opportunity is that if you make one wrong move — a piece of rock breaks off in your hand or your toes lose their grip — you’re likely falling 3,000 feet to your death. It’s an all-or-nothing adventure.
With Way 2 — the way most folks do it — the climber chalks up his hands and gets in those same shoes, but then he hops into a harness, gets these super-long ropes and clips, and starts climbing. And about every 25 feet, he drives a stake or anchor into the rock face and clips onto it. It obviously takes a little longer to get up the face, but if he has that same slip-up, he knows he’ll never fall any farther than that stake he just drove in.
The same thing’s possible when trying to accumulate for retirement. You don’t have to take all your money and go free climbing in the market. That approach doesn’t give you any anchors, and if you fall, there’s no protecting what you’ve built up. However, there are options for ‘clipping in’ a portion of your assets as you accumulate each year, and no matter what happens in the market, just like on the mountain, you can sit confidently knowing that this portion of your portfolio is never dropping below that stake you just drove in.
With the market at an all-time high, it is more important than ever to “anchor” your accounts to protect what you have built from a detrimental fall!
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