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“Secured Retirement Investing” Requires Thoughtful Planning and Education

Many financial experts believe in grandiose theories. They use mathematical formulas to convince millions of American Investors to buy their vision of the ideal American Retirement Account Balance. Statements like, “By the time you’re sixty-five you should have X$” in your retirement portfolio to cover medical costs and to enable you to live the dream of luxury travel and an extravagant lifestyle that involves spending more and more. Retirement plans and accounts are, however, like “beauty”, it is in the “Eye of the Beholder”. My ideal retirement lifestyle is not necessarily that of my cousin or neighbor. Although we have our own interests and needs, we all have different desires. But, one thing we do have in common is that we all deal in a risky industry called Investing.

However, it is possible that Penny Stock Investors do not necessarily mean investing for retirement. Some will build an investment portfolio in order to meet their current business needs. Some invest simply to prove that they can. Others invest in order to earn a monthly income to pay their obligations. Some investors invest in order to build up large amounts of cash.

This article is not intended to convince anyone about investing or why they should do it. It’s simply meant to provide another point of view to encourage investors to consider investing. There is no need to be a part-time investor, a beginner investor, or an experienced investor.

No matter what your motivations, let me make a case to you to invest with one eyes looking down the road towards retirement. We all know instinctively that we will one day “give up”, give out, or wear out. This is not to say that I’m pessimistic. However, I do want to remind everyone that life is unpredictable just as it is in the markets. That means that life and the market have the same potential for volatility, change, risk, and, dare I say, fees, loads and charges. You might be wondering why Monopoly is so popular. Monopoly is a game that reflects “Time and Chance” in real life.

Monopoly’s winners are those who always win. But, remember that life isn’t a game. It’s not like a board game. And you can’t ever memorize all the cards. This is the same as investing! Your investments are subject to multiple volatile conditions at all times. There is no way to stop Time and Chance from happening to anyone. It is prudent to start looking down the road to get a sense of your ideal retirement and to plan for it. Here are some topics to consider.

Living arrangements Family residence, condo/town house, retirement village Based on today’s economy, how much will it cost? Next, calculate your age and your ideal retirement age multiplied with 3% inflation. To adjust for inflation, you will need this calculation to be repeated every year. Although inflation isn’t currently an issue, that will not always be the case.

Healthcare Costs We don’t know the exact amount of these costs, much like we can count the stars at night. This is true for most U.S. investors. We need an alternative plan to cash accumulation, as this is a high risk area. Two key concepts are required to be understood: Mortality and morbidity. These concepts will make your life more joyful. Not!

Food Now this is a topic on which entire 2hr seminar have been built. Today’s Boomer generation can easily recall the price of a loaf bread.

Cents and a coffee at a cafe was.25c. The amazing edible Egg? Between 1985-1987, the price per dozen was between 42.9 and 51.5 cents.