Have you begun to plan for your retirement? You may be thinking "How in the world is that possible with all of my debt and bills?" However, everyone should plan for their retirement. Even if they start late, they should start as soon as possible when the stock market is going good.
It is a very good question that I am often asked. I will not waste your time proposing dumb answers, although I have heard many. And when I hear someone give one of them, I like to ask another question, namely "how much commission do you earn if I follow that advice?" There are in fact four four correct answers to the title question. Now that is getting your money's worth!
Deciding to borrow or withdraw from your retirement fund is not a fine idea either. Your retirement fund is a long-term endeavor. Retirement planning - and financial planning as well - would normally inform your saving toward that goal. You should not compromise a long-term goal like retirement with short-term needs if you can avoid it. Even if you borrow with the intention of repaying, this often does not happen - particularly if you do not properly plan your finances.
Income protection is only one aspect of financial protection. Inadequate homeowners' insurance or unanticipated medical expenses might easily leave you scrambling for funds. It is easy to look toward your retirement portfolio for rescue, as it has accumulated wealth. Adequate insurance for risks that you face is a good way to reduce or cover the costs associated with these risks, should they occur. Financial protection preserves the integrity of your retirement portfolio. Getting the most out of your retirement plan is difficult enough when you are doing it on your own. If you are part of an employer-sponsored plan, you can boost your funds easily when you have your employer match your contributions. This boost to part of your accumulated savings can compensate for risks in other areas of your retirement portfolio. In some cases, you get a 100% return on investment up to a stipulated amount.
You should not invest your entire retirement fund in one asset class, nor should you be too conservative or take unnecessary risks. Portfolio diversification ensures that you are neither too conservative nor too adventurous. Investment risks can handicap or cripple your wealth accumulation for retirement. Portfolio diversification prevents you from risking the partial or total loss of the real or nominal value of your retirement fund. There is nothing worse than building your future - only to see it collapse. Your retirement fund is your investment in the future. You should do all that you can, while it is accumulating, to protect it in the present.
Sir John Templeton was the person who pioneered the investment fund business in the U.S., and later the concept of global investing, before most Americans knew there were other financial markets. He lived his later years living comfortably in the Bahamas. He is one of the real gentlemen of the investing industry who invested other people's money (and his own) very wisely. The first insight seems obvious - if you do not have money you cannot invest it. If that fits your situation, then you should make sure you do not miss an upcoming article on saving and investing. Even those who buy on margin, or sell short, need some money to do this. The other aspect of his response is more subtle - implying that if you do have money, you should be investing it. Sir John was a long-term investor who was very optimistic about the prospects for the world. I can almost hear him say, "there is no time in history where people were as well off as they are today."
It is a very good question that I am often asked. I will not waste your time proposing dumb answers, although I have heard many. And when I hear someone give one of them, I like to ask another question, namely "how much commission do you earn if I follow that advice?" There are in fact four four correct answers to the title question. Now that is getting your money's worth!
Deciding to borrow or withdraw from your retirement fund is not a fine idea either. Your retirement fund is a long-term endeavor. Retirement planning - and financial planning as well - would normally inform your saving toward that goal. You should not compromise a long-term goal like retirement with short-term needs if you can avoid it. Even if you borrow with the intention of repaying, this often does not happen - particularly if you do not properly plan your finances.
Income protection is only one aspect of financial protection. Inadequate homeowners' insurance or unanticipated medical expenses might easily leave you scrambling for funds. It is easy to look toward your retirement portfolio for rescue, as it has accumulated wealth. Adequate insurance for risks that you face is a good way to reduce or cover the costs associated with these risks, should they occur. Financial protection preserves the integrity of your retirement portfolio. Getting the most out of your retirement plan is difficult enough when you are doing it on your own. If you are part of an employer-sponsored plan, you can boost your funds easily when you have your employer match your contributions. This boost to part of your accumulated savings can compensate for risks in other areas of your retirement portfolio. In some cases, you get a 100% return on investment up to a stipulated amount.
You should not invest your entire retirement fund in one asset class, nor should you be too conservative or take unnecessary risks. Portfolio diversification ensures that you are neither too conservative nor too adventurous. Investment risks can handicap or cripple your wealth accumulation for retirement. Portfolio diversification prevents you from risking the partial or total loss of the real or nominal value of your retirement fund. There is nothing worse than building your future - only to see it collapse. Your retirement fund is your investment in the future. You should do all that you can, while it is accumulating, to protect it in the present.
Sir John Templeton was the person who pioneered the investment fund business in the U.S., and later the concept of global investing, before most Americans knew there were other financial markets. He lived his later years living comfortably in the Bahamas. He is one of the real gentlemen of the investing industry who invested other people's money (and his own) very wisely. The first insight seems obvious - if you do not have money you cannot invest it. If that fits your situation, then you should make sure you do not miss an upcoming article on saving and investing. Even those who buy on margin, or sell short, need some money to do this. The other aspect of his response is more subtle - implying that if you do have money, you should be investing it. Sir John was a long-term investor who was very optimistic about the prospects for the world. I can almost hear him say, "there is no time in history where people were as well off as they are today."
About the Author:
Visit the source at: http://www.prlog.org/10761544-time-the-stock-market-with-research-in-motion.html
No comments:
Post a Comment