A resident of Peoria, Arizona, Darcy Bergen is the president of Bergen Financial Group, a financial planning firm emphasizing safe strategies for building wealth. At one time, Darcy Bergen co-hosted the financial radio show Safe Money & Income, which covered smart retirement tips.
In one Safe Money & Income segment, the hosts talked about how to maximize savings in 401K. In 2014 when the segment aired, the hosts referenced a comment from former House Education and Labor Committee Chairman George Miller, who said that the 401K was akin to a high-stakes crap shoot.
The host gave listeners a bit of advice when investing their retirement savings. Investing is like taking a risky elevator ride going to the penthouse. Every day, the fund grows as the elevator moves toward the penthouse. During this time, most investors are likely to hold onto their investments, which is analogous to hardly anyone getting off the elevator.
Alternatively, suddenly, something happens in the markets, and the retirement fund loses money. These moments resemble the elevator descending as the financial forecast becomes adverse. Investors worry about whether to cash out of their retirement fund.
There is one caveat, though. The elevator stops, allowing passengers to get off it. In the same way, investors can pull out of a fund when their retirement fund is not performing as it did while they are on their way to the penthouse.
The host eventually tells viewers that they can be proactive in guiding the direction of their retirement savings upward by working with investment advisors who can show them alternative ways to grow their wealth. By working with an advisor, retirees can get off the risk elevator to see their retirement income only go in one direction-upward.