Why Chasing Big Returns Can Leave You With Less
Welcome to “Money Myths Retirees Still Believe”—a blog series that uncovers the hidden beliefs that can quietly sabotage your financial peace of mind.
Many retirees cling to common money myths that seem true but can lead to poor decisions, lost income, or unnecessary worry. Each post in this series explores one myth—like “cash is trash” or “I need to beat the market”—and replaces it with a smarter, simpler mindset.
If you’re retired or nearing retirement, this series will help you reassess your approach and feel more confident about your financial future.
The Myth: “I Need to Beat the Market”
Jim was a retired high school coach who prided himself on staying sharp. Every morning, he’d read financial headlines over his coffee. He wanted to make sure his money “kept up” and that he was doing better than “the market.” If the S&P 500 was up 10% for the year and his portfolio was only up 6%, he’d feel like he lost—even if his bills were paid, his income was steady, and he was sleeping well at night.
Jim didn’t know it, but he was chasing a myth that affects a lot of retirees:
👉 The belief that you have to beat the market to be successful.
But here’s the truth: you don’t.
Why This Mindset is Misleading
Let’s be honest—most retirees aren’t hedge fund managers. You’re not competing with Wall Street traders or managing billions. Your goal isn’t to win a trophy or brag at the golf course. Your goal is something more meaningful: to make your money last, cover your expenses, and enjoy life without constant financial stress.
Trying to “beat the market” often leads to:
- Constantly switching investments.
- Taking on more risk than you’re comfortable with.
- Feeling anxious during downturns.
- Chasing hot trends (that often fizzle out).
All of that can slowly chip away at the very thing you’re trying to protect—your financial peace of mind.
The Smarter Mindset: “I Just Need My Money to Work for Me”
Success in retirement isn’t about outperforming the market. It’s about meeting your personal goals. For most retirees, that means:
- A portfolio that generates reliable income.
- Investments that are stable, not wild.
- A plan that helps you sleep at night—even during market dips.
If you earn a steady 5–6% annually from income-producing investments like dividend-paying stocks, bonds, REITs, or closed-end funds—and you don’t have to worry about running out of money—that’s winning.
You’re not playing someone else’s game. You’re playing your own.
A Real-Life Example
Take Mary, a 70-year-old retiree in Oregon. She stopped worrying about beating the market and instead focused on building a steady income stream. Her portfolio includes conservative dividend ETFs, a few municipal bonds, and some cash for emergencies.
In a recent year, the stock market soared—but Mary’s portfolio only went up about 4%. Did she care? Not one bit. Her income covered her needs, and she had peace of mind. More importantly, she didn’t lose sleep when the market dipped the next year.
That’s a retiree who’s playing the right game.
Final Thought
You don’t need to beat the market.
You need to beat the fear of running out of money.
And that comes not from chasing the highest return—but from building a reliable, low-stress plan that fits your life.
The market will do what it does. But you? You’re retired now.
Your job isn’t to win a race—it’s to enjoy the journey.