Retirement in the Modern Economy—When the Time Comes

 Retirement in the Modern Economy—When the Time Comes

Many people, in light of recent events, will be concerned about how Today's Economy and Retirement will affect them when they reach retirement age.



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 will get your money back" could not work for them, as the old adage goes.



While it may be great advise for those whose retirement years are still several years away, what if your retirement is actually starting in the next few years? Can you actually see yourself right back where you were?



You can not turn back the clock on what is already happened, but you can control your financial future and make sure that the current economy does not mess with your retirement plans.



Then what am I trying to say? Basically, what I mean is that, although it is true that you can not control everything, you should strive to exert control over the things that are within your power.



You have no say over the likelihood of your dismissal from your position. The only thing you can do to prepare for that possibility is to put money aside. Plus, you will probably wind up bankrupt and starting all over if you do manage to lose your work.



You may, however, exert far greater influence over the investments that your money makes. Far too many individuals fail to notice this, and it has cost them.



A close friend of mine became quite wealthy around ten years ago, and I would like to give you a brief anecdote about it. Like other people, she sought out a financial advisor to handle the investing and safeguarding of her funds.



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 in-depth investment expertise was.



Whatever the so-called "experts" said, she essentially did what they said. The majority of her income came from fees earned on stock purchases and sales conducted on behalf of her investors.



Many individuals do that; they entrust others with their money and cross their fingers. To make matters worse, the vast majority of these individuals are woefully ignorant. Plus, no one you employ will ever put your financial well-being ahead of their own.



At this point, what are you to do? If you want to keep your money safe, you do not need to become a broker and invest full-time, right?



Absolutely not. You should not feel pressured to become an expert, but it is wise to educate yourself on the subject and determine your true investing goals. Is increasing your fortune more important to you than protecting it?



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. Saying "none" will cause them to keep your funds in a savings account from which you will not receive any further compensation.



However, if you acquire the necessary knowledge, you will discover that you may significantly reduce your risk while still experiencing above-average returns on your investment. Indeed, such is the daily practice of the true professionals, who invest their own money.



Retirement and the Modern Economy Need Not Be Rival Efforts. Your earnings will certainly skyrocket if you simply become an informed and active participant in your investments.

Location:

Share :