Retirement in the Modern Economy
Retirement in the Modern Economy
Due to job loss or the declining stock market, many people's retirement funds have been wiped out.
"Waiting until the market rebounds and you'll get your money back" could not work for them, as the old adage goes.
When you're young and retirement is far off, that sounds like good advice. But what if you're meant to start retiring in the next few years? Can you actually see yourself right back where you were?
While it's true that you can't change the past, you can control your financial future by ensuring that your retirement savings and the current economy don't collide.
My meaning is unclear. Basically, what I mean is that, although it's true that you can't control everything, you should strive to exert control over the things that are within your power.
The likelihood of your dismissal from your position is beyond your control. Except put money aside, there isn't much you can do to prepare for that possibility. In any case, you'll be right back where you started if you do wind up losing your job and all your money.
You may, however, exert far greater influence over the investments that your money makes. Way too many individuals fail to notice this, and it has cost them.
Allow me to relate a tale; my dear friend became very wealthy around ten years ago. She followed the crowd and hired a financial advisor to handle her investments and security.
Although she was a pleasant, trustworthy, and reasonably skilled financial advisor, she was essentially nothing more than a commission salesperson. While that in and of itself is not problematic, her lack of serious investment expertise was.
Whatever the so-called "experts" said, she essentially did what they said. Commissions on stock purchases and sales from her investors' portfolios were the main source of her income.
Many individuals do that; they entrust others with their money and cross their fingers. Regrettably, the majority of these individuals lack substantial knowledge. Furthermore, your money will never be more important to any employee you employ than it is to you.
Now what are you to do? If you want to keep your money safe, you don't need to become a broker and invest full-time, right?
Without a doubt. You shouldn't feel pressured to become an expert, but it is wise to educate yourself on the subject and determine your true investing goals. Do you primarily aim to maintain or increase your wealth?
One of the initial things an investing advisor will ask you is, "What is your risk tolerance?" which, when you give it some thought, is really funny. Telling them "none" will cause them to put your money away, where it will remain idle and never earn you a dime.
If you know what you're doing, though, you may reduce your risk to almost nothing while still seeing above-average returns on your investment. It's spot on, and the genuine specialists do it all the time with their own money.
Therefore, the current economic climate and retirement planning need not be mutually exclusive. You will probably find that you are earning more than ever before if you just become an informed and active partner in your investing.
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