You are 55 years old (or somewhere around there) and your company is going to force you to retire at 65. You have $35,000 saved in your 401K and that's all. The house will be paid for by then so you will have a place to live. The company pension will pay about $1,000/month and so will Social Security. What will my life style be like at that time?
Let me give you a clue. You are going to need just about as much as you are making now even with the house paid for. If you are lucky you might have health insurance with your pension, but don't count on it. You hope Uncle Sam will help out. But don't count on it.
When that savings you have runs out maybe one of your kids will let you and the misses have the spare room. Scary, huh! Maybe one kid lives in Minnesota where you can spend the summer and the other in Florida where the winters will be nice. But don't count on it.
You might get lucky and buy one of those stocks that skyrocket from $2.00 to $200. Those chances are 1 in 100 and you don't have enough money to be taking chances. But don't count on it.
Whatever time you have left between now and retirement you should start managing your assets to have them grow and compound better than in the past. If you continue to do what you have done you are going to have the same results. It is a choice between cat food and filet mignon.
A better portfolio manager is not the answer. Saving more will help, but you need to live today. Having your house paid for is a huge plus. A second job with all that income going to savings makes sense ? if you can do it.
One of the better solutions is starting a business you can run from home. The Internet has many offers. My caveat here is never send anyone upfront money. It takes the Avon lady 3 to 5 years before she makes any money. There are many legitimate small businesses like this that can provide a second income, but you must invest both time and effort and be persistent. You must work it every day.
Don't choose any business that requires a substantial capital investment. If you have a friend or relative that has a home-based business you will want to spend time with him. Even if you don't use that vehicle you can learn plenty from that person.
You local library has hundreds of books devoted to helping folks start a business. The Internet is a great source. Take time to investigate and don't take anyone's word for their pie-in-the-sky story. Always get references and carefully check them. You want to talk to someone who recently started in that business about 6 months ago, another about a year before and a third about 2 years prior. Maybe several of each. Once you make the commitment you must hit the ground running and don't stop. Either it will work in a few months or it won't. Hard work is the only way you will find out.
It is not too late provided you start NOW.
Al Thomas' best selling book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter and receive his market letter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know. Copyright 2005
![]() |
|
![]() |
|
![]() |
|
![]() |
For a successful retirement investment plan to work in the... Read More
"Financial planners are like dentists: they may occasionally inflict pain,... Read More
The syntax is tortured, the grammar mutilated, but the message... Read More
This article attempts to help give the investor a broader... Read More
Stock market trading is a fascinating activity.There are so many... Read More
Unfortunately, many investors who are seduced by the lure of... Read More
CATCHING A FALLING KNIFEOne of the most common mistakes made... Read More
The American Football season just came to an end with... Read More
50% Of U.S. Households Invest In The Stock Market Individuals... Read More
Most People just don't understand the power of using their... Read More
JewelryThe advantages are:? Gold Jewelry is the easiest of the... Read More
You may like your financial advisor, but is he really... Read More
So you have learned how to trade the markets by... Read More
Remember the old saying, "never too late to start"? Well,... Read More
The world of trading can get very complex because the... Read More
The trading method you employ to approach the stock market... Read More
One of the greatest preconstruction investing issues that I hear... Read More
As a precious metals investor, you may heard much about... Read More
Have you considered buying a franchise instead of trying to... Read More
The economic data reported Fri showed continued above trend growth... Read More
A SEP is a special type of IRA. Under a... Read More
In this day and age of online brokers for virtually... Read More
1. How to Treat Gap Openings A gap up or... Read More
You all know what CYA stands for. Of course, Cover... Read More
If it seems... Read More
"Risk comes from not knowing what you're doing!" Warren Buffett... Read More
I am sure you have probably read about the power... Read More
A Savings Incentive Match Plan for Employees plan, better known... Read More
Let's start by saying: You can't be afraid to take... Read More
How many books have you read about successful traders? How... Read More
When trying to analyze whether a promotional ad for an... Read More
According to Morton Pollack, CEO of PWS, The Laundry Company... Read More
Are you as good an investor as you think? Do... Read More
You've probably heard about people who keep their money offshore.... Read More
The stock market fell sharply Thu and Fri before and... Read More
The best way to avoid being hit hard by a... Read More
In less than four years, the price of oil has... Read More
There are three important differences between investing and trading. Overlooking... Read More
The last time you spoke with your broker did he... Read More
The straddle strategy is an option strategy that's based on... Read More
RETIREMENT PLAN CONSIDERATIONS are something every small business person needs... Read More
There is one indicator more than any other which determines... Read More
Let's face it, you're on a roll. After getting down... Read More
The inventory of the typical store represents the largest single... Read More
Firing an employee seems to be easier and easier for... Read More
Are you ready to open your pathway to financial independence?Well... Read More
The financial characteristics of the automobile dealership are attractive:". .... Read More
Everyone knows T Rex was the most fearsome of all... Read More
As a precious metals investor, you may heard much about... Read More
What are the risks?Today, investors are increasingly turning to global... Read More
In many respects, Singapore is the Switzerland of Asia.Begun in... Read More
For a successful retirement investment plan to work in the... Read More
They call 'em ETFs.There are hundreds of them.The mutual funds... Read More
There are many different ways to invest in world markets:... Read More
While there is not a lack of information on annuities,... Read More
Step 1: Spend less than you earnPerhaps the simplest financial... Read More
The U.S. economic data reported this week showed strong output... Read More
How much are you willing to pay for a tank... Read More
Seniors on fixed incomes face a unique problem. Where do... Read More
Sometimes you spend sleepless nights worrying about which stocks to... Read More
College Savings Plans ? are they the best choice for... Read More
Yes, it's the time we've all been waiting for?tax season!... Read More
Today, I am going to start a multi-part series about... Read More
Q: I own a small decorating business and I'll be... Read More
"Risk comes from not knowing what you're doing!" Warren Buffett... Read More
All this talk about Investing is encouraging lately. Over the... Read More
Investing |