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If you think there’s nothing rock’n’roll about investing, you obviously don’t work for the CFA Institute, where Thomas Collimore, director of investor education has compiled a list of 10 baby-boomer-era rock songs and what they mean to their now retirement-age fan base.
10. Hotel California – The Eagles
“We are programmed to receive/You can check out any time you like/But you can never leave.” These lyrics are a clear warning that liquidity is an issue if a fund manager has the power to decline a request for redemption, a possibility in a difficult market.
9. Taxman – The Beatles
With the Internal Revenue Service coming after you, Collimore cautions investors to draw from after-tax accounts before tapping tax-deferred investments.
8. Lady Madonna – The Beatles
Lady Madonna’s money woes highlight the need for a financial plan that can provide income even if investments underperfom in the future.
7. Stairway to Heaven – Led Zeppelin
Rather than assuming all that glitters is gold, investors must make sure they understand how an investment product works before they buy it.
6. Takin’ Care of Business – Bachman Turner Overdrive
If becoming a rock star was as easy as fishing, everyone would be one. The same goes for getting rich from the markets, which is why investors need expert help from advisors.
5. Sympathy for the Devil – The Rolling Stones
You may feel sorry for him, but that’s no reason to invest with a blacklisted advisor. Check advisors’ records at the websites of the Securities and Exchange Commission and FINRA before parting with your cash.
4. When I’m Sixty-Four – The Beatles
Don’t rely on long-term projections because many factors change over time. Investors should revisit their financial plans regularly to make sure everything’s still on track.
3. My Generation – The Who
For those who get old before they die, longevity is a significant risk. A girl born in 2005 can expect to live until 89 years of age on average.
2. Dream On – Aerosmith
Everybody’s got their dues to pay in life, and that includes investors, so watch expenses and shop around for the lowest fees.
1. Teach Your Children – Crosby, Stills, Nash and Young
“You who are on the road/Must have a code that you can live by.” So consider finding an advisor, who follows the fiduciary standard, which puts the investor’s interest first.
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