Modern Financial Markets and Retirement-When the Time Comes

 Modern Financial Markets and Retirement-When the Time Comes

In light of recent events, many individuals may be concerned about how the current state of the economy and retirement plans will affect them in the future.


The loss of jobs or a decline in the stock market has wiped out the retirement funds of many people.

If this is the case, the age-old adage about "waiting until the market rebounds and you'll get your money back" might not apply to them.

That may be excellent advice if you're young and retirement is still a ways off, but what if you're expecting to begin your golden years in the next few years? Is it truly possible that you will be able to return to your original state?

You can't turn back the clock on what's already happened, but you can control your financial destiny and make sure that the current economy doesn't mess with your retirement plans.

My meaning is unclear. While it's true that there are some things outside your control, the most important thing is to make the most of the ones that are within your sphere of influence.

You have no say over the likelihood of your dismissal from your position. 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.

If you want greater say over your investments, though, you can have it. Tragically, this is something that many fail to notice, and it has cost them.

A close buddy of mine became quite wealthy around ten years ago, and I'd like to tell you a brief anecdote about it. 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. That in and of itself is not a problem, but her understanding of investing was superficial at best.

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. 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.

Then what is your duty? To safeguard your wealth, you need not enter the financial industry as a broker or devote your life to investing, is it?

Obviously not. You don't need to be an expert, but it's a good idea to educate yourself on the subject and figure out your investing goals before you get in. 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.

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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