Archive for the 'Investing' Category

Why is it important to invest money to grow over time for retirement?

Friday, April 24th, 2009
Bomapo asked:


I have to write a essay and I am clueless about this topic. I’m supposed to tell why its important to invest money for retirement and why its important to diversify invesments among different asset classes. Can anyone clear things up for me?

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How do I go about saving for retirement? Should I invest in individual stocks or mutual funds?

Thursday, April 23rd, 2009
Rob K asked:


What % of my income should be allocated towards investments? I have about 25 years until retirement. Should I find a good mutual fund with a decent return and accumulate more and more of it and buy and hold? I am worried about tax implications if I buy investments and then sell them.

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What is the best way to save for retirement if I am a stay at home mom. What is a spousal IRA?

Tuesday, April 21st, 2009
I love sushi asked:


I quit my job to stay home with my daughter. But i may go back to work some day and would like to use my 401K money to continue saving for retirement in the mean time. What is the best option?

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What are the different reasons to open a general investing and/or a retirement investing account?

Thursday, April 16th, 2009
Ty C asked:


On Vanguard it has a General Investing account and a Retirement Investment account. Obviously the latter is for IRAs, but what is the advantages and purpose of the general investing?

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How many of you think that Teacher Retirement Pension Plans will be worth investing in the long run ?

Sunday, April 12th, 2009
Penny asked:


How many of you think that state Teacher Retirement Pension Plans will be worth investing in the long run if you start investing now?

retirement

What effect will retiring Boomers have on the stock market?

Thursday, March 26th, 2009
retiring
TONY S asked:


It is possible the boomers will divest at the same time and cause the market to recede. It is also possible they will leave their money there, in different assets, and nothing will happen.
In any event, the younger boomers would be at the greatest risk. Or would they? Do the young boomers constitute the bulk of the Boomers? Or is it the older ones?
What do you think?
National health care for seniors is a platform for the next pres. election, and I plan to vote for someone with a good plan. We need national health care so seniors on SS can have medical coverage.

EDWARDO

How will baby boomers retiring affect the stock market?

Sunday, March 15th, 2009
retiring
dubs81csu asked:


As our elderly start pulling from retirement funds rather than contributing to them, do you think we’ll see the market as a whole take a dive?

ADELE

Retirement Planning – What Should You Consider During Retirement Planning

Saturday, March 14th, 2009
retirement
Albert William asked:


There are several people, who take up retirement as the end of their active life and get depressed over the issue. However, there are others, who take a different perception to the prospect of retirement, as they would have free time completely to themselves. Most of these people start retirement planning and retirement investment much before they are about to retire, so that they get to execute their plans in a proper manner. Their retirement plans may include different things like spending quality time with the family members, devoting more time to their hobbies or try for some side jobs to keep themselves engaged.

Start building social life

Definitely for the hard workers, life becomes miserable due to the hectic work schedule they have to follow every day; it is as if they do not have any social life. Thus, individuals should take the opportunity of retirement to make up for everything that they have been missing so far. When you would be going about your retirement planning, try to focus on the different ways you could make use of the time by staying with your family. Even your family members, who have been seeing much less of you, due to your busy schedule, would feel happy to have you around.

Make use of your hobby

Most of you have unique abilities or interests, which you might not have been able to culture with during your working phase. These things, like your hobbies, may have been very dear to you before you started working; but owing to the pressure you had to keep them bottled in. This is the best opportunity for you to start fresh with them, and try to keep space for them in your retirement planning. Some of you might have even better plans to go out on travels and enjoy your life, viewing the various wonderful places the world has to offer.

Consider doing some side jobs

Moreover, you might also consider continuing doing some side jobs, as part of your retirement planning program. This obviously is a good measure, as it will keep you active even after you retire and provide you with a standby income, which would further promote your financial stability. If you feel that this may be a tough call for you, think again; there are plenty of options of getting side jobs even after your retirement. Starting from the internet to several other firms and organizations, experienced individuals are required to help them stabilize their work process.

Keeping these factors in mind, try to continue your retirement planning in such a way that it helps you to get the upper hand. Make sure that your retirement planning would guarantee you the enjoyment and space that you wanted for a long time. The thought of retirement should bring a new hope to you, pushing you further to dream about the numerous possibilities that lie ahead of you; consider all these in your retirement plan. If you do it with some time in hand and do it in a proper manner, then you could enjoy your retirement in a grand style that could be envied by many.



GLEN

Retirement Plans- What You Need

Tuesday, March 10th, 2009
retirement
Albert William asked:


Analyze the modern definition of man and you would find that he has become a machine. Hectic schedules, lot of pressure, obligations etc that are required to keep afloat in this cut-throat competition has made him a mere mechanical structure. This situation becomes even more intense when he retires. All day and night he is surrounded by thoughts. Whether staying in the current residence would be good? Is retirement community the best place to stay? What will happen if I get ill? What will I eat? And the list is endless. The answer to these entire questions is to look for retirement plans before retirement itself.

However, most of the people think about these questions when he is already retired. Things like retirement investment, retirement income etc, which should have been pondered upon before retirement, is being taken into consideration after retirement. Strange, is it not? This incongruity is brought by the lack of knowledge about what they would need after retirement. They only have one thing in mind, peace, solace, rest etc. Ask yourself, whether these things would be able to make you live. Without any doubt, no!

Here’s is a list of what you may need to sustain your life after retirement.

Psychological Needs

Psychological needs include basic needs like food, shelter, clothing and others. Whether before retirement or after, these three parameters would always play an important part in your life. Whatever, your retirement plan is; make sure that these things are their epicenter.

Safety needs

Safety needs, after retirement, also has an important act to play. Off course, we need stability, protection and on top of that a society with a better law and order norms. With physical assaults on senior citizens rising like never before, this need should not be ignored in any case.  However, this safety need is not only about physical protection but it also includes financial protection. Most of the retirees choose pension system as one of the forms of security.



Belonging need


Belonging needs are, however, not in your hands. It is the warmth and love that you get from your friends, family and society. You reap what you sow. No doubt, you are very busy but it is also important to maintain good rapport with your old mates, family, society etc.

Self-esteem need

Though most of the people would remember all the above said three needs while sorting out their retirement plans but they would definitely forget this one. Now, this need is fulfilled through fame, dignity, status and ability to make and influence decisions both in community and family.  



Need for Self actualization


This is the need which no one can fulfill but always caters for. It is actually the endless force to be everything that you can be or that you can achieve.

Apart from the last needs, all the above said needs should be properly analyzed and then implemented in to your retirement plans. Moreover, most of the government and non-government organization are coming up with a good retirement plan to help retirees. But we need to wait and watch how much they will be efficient enough to sort out every problem.



MILLIE

Saving for Retirement - to Retire Comfortably you Need to Do the Following!

Thursday, March 5th, 2009
retirement
Sacha Tarkovsky asked:


Do it properly! Although this is an obvious statement, most people when saving for retirement don’t know how to do it properly.

They make errors that cost them and cost them big time. They can’t retire in comfort and this is not the minority - this is the majority!

Problems we all face Are:

Keep in mind, the state won’t help you much, medical costs are soaring and people are living longer.

Unless you are saving for retirement properly, you won’t enjoy your golden years and of course you should – You have worked hard all your life!

Let’s face it – if you have worked hard all your life enjoying your “golden years” should be your right.

Lets look at some common mistakes people make when saving for retirement and how if you don’t make the same mistakes, you can enjoy the comfort and lifestyle you deserve.

Common mistakes

Here are some common mistakes that people make when saving for retirement:

1. Mutual funds and stocks can make you rich

Well let’s look at the facts.

If you are saving for retirement you can expect maybe 10% annually compounded and taking into account inflation that’s not much.

Even more worrying is 90% of funds cannot even do this!

They lose, or provide single digit gains that are eaten up by inflation.

Why do people invest in mutual funds?

Most of the time they are taken in by the sales hype and this does not match the reality.

2. Don’t take risks when Upside is limited & downside is more!

If you are going to save for retirement your better off in a fixed interest fund – same upside and less downside.

Check the facts:

Ask any mutual company for an average performance of ALL funds under management. You won’t get it, but if you could you have losses across the board.

Forget the sales patter!

When a fund performs great – when it fails they launch a new one.

They don’t care if you make money or not, they have their commission so why do they care? They don’t.

2. Alternative Investments for growth

OK great lets when saving for retirement trade alternative investments:

Like currencies, futures, options or hedge funds.

A warning – Keep in mind the risk reward:

90% of investors lose in these investments and that’s the lot!

Consider saving for retirement in a hedge fund. Most are secretive and unregulated so you cant see what they do. They are not obliged to give you performance of all funds under management and most blow up!

This means losses of 50% or more in most cases …Don’t believe they lose? Check the statistics. Hedge funds sound fantastic in theory, but the reality is very different.

3. When you get close to retirement you cant take risks

Why? Quite simply if you are saving for retirement you can take losses early on as you have time to recover, when you get close to using your fund you cant.

You have spent years building it and it needs to kept intact.

Don’t take risks in the last few years. The odds are you can’t won’t make it back quickly enough! Use low risk investments..

4. High return and low risk

We all want this!

We want this at anytime but when saving for retirement it’s essential.

We ALL want our money to work hard and produce above average gains with little downside risk, but is it possible?

The answer is yes!

5. The best low risk investments

When saving for retirement, you will hear it time and time again..

Property is the best investment and it is a good one, but there is one that compares that’s cheaper and growth potential is the same, if not more.

When saving for retirement lets look at land. Here we will give you one example, but there are many more. Just check these statistics out and your mutual fund manager will weep with envy!

Land is a simple investment and is the secret of the world’s wealthiest investors:

Let’s consider Costa Rica. You can by land at 70% less than in the US and there is a huge property boom going on and land is at a premium and that means huge growth potential.

Quite simply, Americans are buying Costa Rica properties in record numbers to get second and retirement homes at cheaper prices and their only 3 hours from the US!

What does this mean, if you are saving for retirement? It means big gains and low risk:

50 - 100% gains per annum are being made with low risk ( prices don’t tend to fall here in land they simply stay static and rise quickly) is this better than your mutual fund? No contest!

You want good returns and low risk when saving for retirement and land investment gives you this.

We don’t have room to tell you how cheap it is, how tax efficient it is, how easy it is to do and why this boom will continue but check the facts for yourself.

If you want to save for retirement, land is the ideal vehicle and you should consider it



DONN