Why Retirement Investing Is Vital
Investing for Retirement
Retirement investing is more required than you believe nowadays. And heres why …
Lots of employees have to fight their method through every day, from the ordeal of Monday to the heart-warming bliss of Friday. They see the days coming and they understand what to anticipate. And its justalmost the same for the weeks, with people scanning the horizon for the next vacation or getaway.
But the years do just tend to slip by most of us. You never ever see them coming and then one day they all of a sudden walk up behind you and slap you on the back of the head.
You know this is true, whether youre an antique yourself or simply accompany old people. One consistent conversational style for individuals whove turned the odometer over a few times is, Where did the time go?
My contention is that many of us handle to put off believing too difficult about our financial futures up until we hit 55. Thats the year you stop counting up and start counting down.
At that age, youre at or near the peak of your earning power. Youve weathered house payments, automobile payments, your kids education and weddings and youre now an empty nester. And unexpectedly the huge SIX-FIVE, the traditional retirement age, is close enough that you can count the years on your fingers.
For many peoplemany individuals, its a big wake-up call. And for much more, its a sphincter-tightening minute of sheer panic. Which because the retirement planning that youve been operating at haphazardly is suddenly looking totally inadequate.
How inadequate? Well, a study by the Worker Advantage Research study Institute (EBRI) and Greenwald amp; Associates says that just 14% of all employees have $250,000 or more in their retirement savings. (Fortunately, that percentage increases to 23% for workers over the age of 45, but thats still quite preventing.)
Considering that I have the tendency to concern my readers as exceptional in every way, Im presuming that your retirement preparations are much further along than the average.
However just in case theyre not, I wantwish to make 2 points. Initially, no matter what youre doing, you need to stop thinkingconsidering saving for retirement and begin believingthinking of retirement investing.
Saving for retirement is the worn out old concept that you spend your working life filling a bucket of cash then start ladling it out slowly when you retire.
But any money that you have in an actual cost savings account is pretty much wasted, since your rate of return on a bank savings account guarantees that your money will be constantly losing acquiring power as inflation eats away at it.
If you desirewish to get ahead in a capitalist society, you needhave to be making capital financial investments. If your cash isn’t really working hard for you, its simply sitting there losing value. Thats why retirement investing is important.
My 2nd point is that the suitable person to be in charge of your retirement investing is you. Yes, you can turn the job over to a monetary organizer, a stock broker, a mutual fund salesman or your brother in law.
But nobody is going to pay closer interest to your financial investments, or keep your bestbenefits in mind, or charge you lower costs, than you, yourself.
So if youve just hit the double nickels (thats 55 for those of you who do not remember the people band radio fad) and you need a credible partner to help you in your retirement planning, consider Cabot. Weve been at this for over 45 years, and we knowwe understand what were doing. We also understand exactly what you should be doing. If youre heading into retirement or already retired, Cabot Dividend Investorand its portfolio completefilled with winning retirement stocks might be simply what you need.
Heres this weeks Fortune Cookie. Keep in mind, you can constantly view all previous Fortune Cookies here and Contrary Viewpoint buttons here.
Tims Remark: Id never ever seen this quote previously, and should admit Im alternately horrified and amused at the concept of borrowing brains. Most likely Wilson was describing the practice of consultingseeking advice from others, a technique that frequentlybut not universallyyields much better outcomes.
Pauls Comment: Wilson was a smart guy, the only PhD to work as President, however he understood that two heads were much better than one. That principle has a limitation, naturally, because having too lots of brains on the task is a recipe for mayhem, instead of genius. But getting guidance in small amounts is normally a good concepta smart idea.