Don't Let an Ego-Driven Portfolio Crash Your Retirement
Congratulations, you managed to put together a brag-worthy investment portfolio, but making the adjustments necessary to keep it there takes a lot of work. Over the years, it's not uncommon for even the best investors to lose touch, and by the time they ask for help, it can almost be too late.


“Please just fix it.”
I think a lot of investors would be surprised how often financial advisers hear those four little words. And how often, by the time someone asks, it’s almost too late for us to offer any help.
Just recently, for example, I had a gentleman who’s been handling his own investing for decades come in and tell me he just can’t do it anymore. He’s 72, he’s been diagnosed with cancer, and his wife isn’t the least bit interested in managing their accounts. “I’m realizing we need professional help,” he said.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
I took a look, and there was the typical mishmash of investments. They were chosen, I’m sure, with good reason at some point. But at some point, those reasons went away.
One position that stood out was General Electric. It’s been headed in the wrong direction for a while now, and yet, he’d held on. Why?
Well, he said, they have a new CEO, and they might turn it around. There’d been times when he’d made money with it, and he wanted to see it come back. And he felt the dividend made it worth keeping.
“But the truth is, I’d sell all this stuff tomorrow if you could just fix it for us,” he said.
That was on a Friday. The following Tuesday, GE announced it was cutting its quarterly dividend to a penny a share — the eighth-largest dividend cut in the history of the S&P 500. The stock is down to a price that might make it a good pickup for someone — but not necessarily for a couple in their 70s who need to pull income from their nest egg.
And now my new client is going to chemo treatments, he’s not feeling well, and he and his wife are trying to get back to our office to get everything figured out.
Of course, I’m going to help them. I just wish they had come in a lot sooner.
I’ve had couples come in and tell me they’ve already filed for Social Security, sold their house and want to retire in a month. I’ve met with widows who have no idea what’s in their portfolio, because their husband took care of everything. And I’ve worked with 30-somethings whose parents sent them to me because they saw the value of getting advice sooner rather than later.
Guess who’s better prepared for retirement?
People frequently ask me when it’s time to go see a financial adviser — and the answer is always, “It depends.” Fifty to 55 is good. Younger is better.
But the problem is that many DIYers aren’t ready to let go at that age. We get a lot of people — men mostly — who, when they’re 50, are filled with bravado. They like to play the market and brag to their friends about their wins. It’s an ego thing.
Unfortunately, that ego-driven portfolio is often lacking in diversification or any sort of holistic plan that will work for them in retirement. DIYers often stick with strategies and products they know (stocks from companies they’re familiar with, for instance) instead of looking for what will get them to their goals. There’s little or no thought given to tax-efficiency, mitigating risk or the fees and other costs that can eat away at earnings.
And, sadly, many investors don’t realize they’re in trouble until they’re older, the market is falling and they don’t have enough money.
Putting together a portfolio objectively isn’t exciting. As you get closer to retirement, you have to make choices that are safer and more stable. It isn’t fun, and you can’t learn it from listening to one workshop, radio show or YouTube video. That’s kind of like me watching YouTube to build a forced-air furnace for my house and hoping it turns out.
There are thousands of tax and Social Security rulings that can affect an individual’s or couple’s retirement outcome. A good financial adviser will look at your entire nest egg — your 401(k), your Social Security, your pension … everything — and plan it out to age 90 or even 100. Ask yourself if that’s what you’re prepared to do.
- Do you have the time to follow up on every investment and make changes to your portfolio when major life events occur?
- Do you have the discipline to ignore your ego and explore what’s really right for your personal financial situation and goals?
- Do you have what it takes to dig into the minutiae of the tax laws, the market and non-correlated investments, and Social Security rules that are ever-changing?
- Do you have a willing and interested partner who can take over if you are no longer able to manage your accounts? (Or someone who at least knows where you stand?)
- Do you stay on top of the news (political, economic and foreign policy, etc.) and understand how current events might impact the market?
If you do, maybe DIYing is for you. But investing isn’t an easy thing.
Seeking advice from a professional doesn’t mean you’ve failed or that you must give over total control of your financial decision-making to that person. What it can do is help take some of the load off your shoulders, dial down the stress and help you find missed opportunities or mistakes before it’s too late.
Kim Franke-Folstad contributed to this article.
Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Scott Tucker Solutions Inc. are not affiliated companies. Investing involves risk, including the potential loss of principal. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. Scott Tucker Solution, Inc is not affiliated with the U.S. government or any governmental agency. 675356
Appearances on Kiplinger.com were obtained through a paid PR program. The columnist received assistance from a public relations firm in preparing this piece for submission to Kiplinger.com. Kiplinger was not compensated in any way.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Scott Tucker is president and founder of Scott Tucker Solutions, Inc. He has been helping Chicago-area families with their finances since 2010. A U.S. Navy veteran, Scott served five years on active duty as a cryptologist and was selected for duty at the White House based on his service record. He holds life, health, property and casualty insurance licenses in Illinois, has passed the Series 65 securities exam in 2015 and is an Investment Adviser Representative.
-
Four Surprising Signs You’ll Never Retire (and How to Fix Them)
Gearing up to retire? If any of these four signs ring true, you may want to make some changes before you do.
-
Stocks Rise After Trump-Powell Fed Tour: Stock Market Today
Nvidia hit a new all-time high intraday, but another renowned semiconductor name and some less iconic stocks were bigger movers Friday.
-
How Divorced Retirees Can Maximize Their Social Security Benefits: A Case Study
Susan discovered several years after she filed for Social Security that she is eligible to receive benefits based on her ex-spouse's earnings record. This case study explains how her new benefits are calculated and what her steps are to claim some of the money she missed.
-
From Piggy Banks to Portfolios: A Financial Planner's Guide to Talking to Your Kids About Money at Every Age
From toddlers to young adults, all kids can benefit from open conversations with their parents about spending and saving. Here's what to talk about — and when.
-
I'm an Investment Pro: Here's How Alternatives Could Inject Stability and Growth Into Your Portfolio
Alternative investments can often avoid the impact of volatility, counterbalancing the ups and downs of stocks and bonds during times of market stress.
-
A Financial Planner's Guide to Unlocking the Power of a 529 Plan
529 plans are still the gold standard for saving for college, especially for affluent families, though they are most effective when combined with other financial tools for a comprehensive strategy.
-
An Investment Strategist Takes a Practical Look at Alternative Investments
Alternatives can play an important role in a portfolio by offering different exposures and goals, but investors should carefully consider their complexity, costs, taxes and liquidity. Here's an alts primer.
-
Ready to Retire? Your Five-Year Business Exit Strategy
If you're a business owner looking to sell and retire, it can take years to complete the process. Use this five-year timeline to prepare and stay on track.
-
A Financial Planner's Prescription for the Headache of Multiple Retirement Accounts
Having a bunch of retirement accounts can cause unnecessary complications. Consolidation can make it easier to manage your savings and potentially improve investment outcomes.
-
Overpaying for Financial Advice? A Financial Planner's Guide to Fees
Take five minutes to review how much you're paying for financial advice. If you're overpaying, you could be better off with an adviser who charges a flat fee.