Why Believing This Myth Can Cost You More Than You Think
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: “The Market Is Rigged”
After the 2008 financial crisis, George, a 65-year-old retired machinist, pulled all his money out of the market. “It’s all a setup,” he’d tell his friends at the coffee shop. “Wall Street wins. People like me lose.”
Ever since then, he kept everything in cash and CDs. Safe? Maybe. But after years of near-zero interest rates and rising prices, his retirement income was barely keeping up.
George, like many retirees, fell for a powerful and deeply emotional belief:
👉 That the stock market is “rigged” against the little guy.
And while it’s true the market isn’t perfect, believing it’s hopelessly stacked can be one of the costliest decisions you’ll ever make.
Where This Myth Comes From
It’s easy to see why people feel this way:
- Big headlines about insider trading, bailouts, and algorithmic traders.
- Rapid booms and busts that seem to benefit large institutions, not average folks.
- A history of crashes that wipe out people’s savings at the worst time.
But here’s the key distinction:
👉 The market is unpredictable—not unfair.
You don’t need to be on the inside to succeed. You just need a plan that doesn’t depend on guessing what’s next.
The Reality: You Can Still Win—By Playing a Different Game
Trying to outsmart the market day to day? That’s hard.
But building a smart, steady portfolio designed to meet your needs over years or decades? That’s absolutely doable.
Here’s how everyday investors win:
✅ Low-cost index funds that track the overall market
✅ Dividend-paying stocks that provide steady income
✅ Diversified portfolios that include bonds, real estate, and income funds
✅ A buy-and-hold mindset that ignores short-term noise
✅ A withdrawal strategy that matches your real-life income needs
You’re not trying to beat hedge funds. You’re trying to keep your refrigerator full and your bills paid. That’s a completely different—and more achievable—goal.
A Real-Life Example
Maria, a 70-year-old widow, used to say, “I don’t trust the market.” But after meeting with a retirement planner, she took a different approach. Instead of chasing hot stocks or trying to predict crashes, she invested in a mix of dividend ETFs, municipal bonds, and a small portion of a growth index fund.
Her investments now pay a steady monthly income. She ignores the daily headlines. And when the market dips, she doesn’t panic—because her cash and short-term bonds cover her immediate needs.
She’s not “playing the game.” She’s living her life.
Why Believing This Myth Can Be Harmful
Here’s what can happen when you assume the market is rigged:
- You sit in cash and fall behind inflation.
- You miss years—sometimes decades—of potential growth and income.
- You fall prey to unregulated, high-risk “alternatives” that really are stacked against you.
Ironically, avoiding the market because it feels unfair often leads to worse outcomes than simply participating in a boring, proven strategy.
What to Remember
The market has its ups and downs. It’s messy. It’s noisy. And yes, there are players who have more information and faster computers than you.
But you don’t need speed. You need clarity.
You don’t need to beat the market. You need your money to last.
When you use time, diversification, and income-focused investing to your advantage, the market becomes a tool—not a trap.
The Takeaway
Don’t let one bad decade—or one scary headline—convince you the whole system is broken.
The stock market isn’t perfect. But it’s still one of the best long-term tools retirees have to grow their money, earn income, and maintain independence.
You don’t have to love it.
You just have to use it wisely.