Inertia in investing2 of 6Inactivity can prove detrimental to your personal finances, and it could result from the fear of investors to take on risk or a fear of failure.Evan Kessler, Certified Financial Planner and founder of ESK Capital Management LLC in New York, says one major problem with many clients is the tendency to take on too much risk or not enough."Many of my retired clients who were frightened by the large market drop of 2008 are now sitting with portfolios that contain too much cash and/or bonds," he says. He warns that the effects of inflation and taxes will prevent these investors from reaching their retirement goals."Although they are not taking equity market risk, they still risk running out of money," Kessler says. Related Articles:TIPS tipsHow government helpsMutual funds vs. ETFsInflation protectionRelated Links:Investment calculatorFund managers' strategiesBroker blameless for lossHow to use tax refund advertisement
Inactivity can prove detrimental to your personal finances, and it could result from the fear of investors to take on risk or a fear of failure.
Evan Kessler, Certified Financial Planner and founder of ESK Capital Management LLC in New York, says one major problem with many clients is the tendency to take on too much risk or not enough.
"Many of my retired clients who were frightened by the large market drop of 2008 are now sitting with portfolios that contain too much cash and/or bonds," he says. He warns that the effects of inflation and taxes will prevent these investors from reaching their retirement goals.
"Although they are not taking equity market risk, they still risk running out of money," Kessler says.