Break Away From The Herd

Panicking can lead to poor decisionmaking when planning your pension

In a perfect world, the steps to investing for retirement are simple. You select the best investment for your risk appetite and time horizon and, if necessary, change course every so often when markets or your goals change. For the rest, you sit back and watch your investment grow through cycles of market turbulence while you look forward to a comfortable retirement.

Warren Buffett is quoted as saying that this strategy is simple, but certainly not easy. The reason is that we are all human. We overreact, get scared, jump to conclusions, listen to bad advice or no advice at all or simply lose our heads.