What are wealth managers saying to clients who are invested in some areas that are no longer so safe?

Here’s what H Craig Rappaport, author of “Live Long, Live Rich — Creating Your Retirement Paycheck,” writes:

If something has materially changed regarding the risk and the expectations for the investment, then a decision needs to be made whether or not the risks are still in line with the reward and the clients risk profile. All too often it is the advisor that is afraid to call or too stubborn to admit they are wrong that causes the larger financial losses. Especially when it comes to retirees, advisors need to make sure that the reward warrants the risk for this vulnerable set of investors.

It is ego that often leads to disaster. If you ask the investors, most have not called their advisors and asked them to be heros.