The Hidden Cost of Waiting: Why Sitting on the Sidelines Could Hurt Your Retirement

The
Hidden Cost of Waiting: Why Sitting on the Sidelines Could Hurt Your Retirement

If you’ve
felt uneasy watching the markets bounce up and down this year, you’re not
alone. Volatility always makes headlines — and for retirees or those nearing retirement,
it can be tempting to “wait things out” and keep more money in cash until
things feel calmer.

But history
tells us that waiting often costs more than staying invested with a solid plan.

Missing
the Best Opportunities

One of the
biggest challenges for investors is emotional timing. According to DALBAR’s Quantitative
Analysis of Investor Behavior, the average equity fund investor earned
nearly 7% less annually than the S&P 500 over a 30-year period — largely
due to poor timing decisions driven by fear and uncertainty.

Some of the
strongest market rebounds tend to occur when sentiment is at its worst.
Investors who pull back during market dips often miss those early recovery days
— and the long-term impact can be significant.

(Source:
DALBAR, QAIB Report, 2023)

The
Erosion of Buying Power

Another risk
of sitting in cash too long is inflation. Even with inflation slowing, prices
are still far above where they were just a few years ago. A dollar in a savings
account today buys less than it did five years ago, and keeping too much of
your portfolio in cash or CDs can quietly erode your long-term purchasing
power.

That’s not
to say you shouldn’t have a safety cushion — but beyond your emergency reserve,
your investments should be working for you, especially during retirement.

The Value
of a Disciplined Plan

A sound
financial plan helps you make decisions from a place of strategy — not fear. A
diversified portfolio tailored to your goals and risk tolerance can give you
confidence during the ups and downs.

Think of
investing like planting a garden. You don’t dig up the seeds every time the
weather turns. You water them, give them time, and trust the process. Markets
go through seasons too, and those who stay disciplined often reap the rewards.

What
Should You Be Doing Right Now?

If you
haven’t reviewed your retirement income plan lately, this may be a good season
to take another look. A few small adjustments today could help you feel more
confident about tomorrow — no matter what the headlines are saying.

Here When
You Need Us

We’ve made
financial plan reviews a priority this season to help ensure our clients stay
on track, regardless of market conditions. If it’s been a while since you’ve
taken a fresh look at your plan, now may be a good time.

Whether you
manage things on your own or already work with an advisor, staying proactive is
key.

If you ever
want a second opinion — or just have a few questions — feel free to call or
email our office. We’re always happy to be a resource to the community.

As always,
thank you for your continued trust and for allowing me to serve this wonderful
community.

Kent Pendleton, AAMS®

Financial Advisor, RJFS

Pendle Hill Advisors LLC

14375 Liberty St, Ste 109 | Montgomery, TX 77356

T 936-297-8267

Kent.Pendleton@raymondjames.com | www.raymondjames.com/pendlehilladvisors

Securities offered through
Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory
services are offered through Raymond James Financial Services Advisors, Inc.
Pendle Hill Advisors is not registered broker dealers and is independent of
Raymond James Financial Services.

Opinions expressed in the attached article are those of the
author/speaker and are not necessarily those of Raymond James. All opinions are
as of this date and are subject to change without notice. Investing involves
risk and you may incur a profit or loss regardless of strategy selected,
including diversification and asset allocation. Prior to making an investment
decision, please consult with your financial advisor about your individual
situation. Every investor’s situation is unique and you should consider your
investment goals, risk tolerance and time horizon before making any investment.
The forgoing is not a recommendation to buy or sell any individual security or
any combination of securities. The information contained in this report does
not purport to be a complete description of the securities, markets, or
developments referred to in this material.