Money Paralysis.pdf

Not making a move may not be the best move to make. A decision not made may have financial consequences, and both women and men may fall prey to money paralysis as they age, regarding financial indecision as a form of "safety." This tendency is heightened in retirement, where fear of drawing down savings or investing in risky assets can lead to "paralysis by analysis" and cost individuals in the long run. Maintaining a standard of living in retirement requires some growth investing to out-earn inflation, and doing nothing or avoiding risk can put individuals at greater financial disadvantage. Keeping a foot in the stock market allows invested assets to keep pace with or outpace inflation. Retirement is the time to withdraw retirement assets, and pinching pennies with the idea that savings are for "someday" can weigh on one's psyche. Growth investing offers the potential to generate a larger retirement fund, and seeking more retirement income can be arranged with a financial professional. Social Security benefits can also grow by 8% for each year claimed after full retirement age, and guidelines like the 4% rule or the RMD strategy can provide a framework for retirement income withdrawals.