An Economical Retirement Investment Plan

The practice of economy, directed toward a retirement investment plan in the stock market, is in itself a source of great revenue. It is the art of making the most out of every stock market investment, with the definite purpose or goal being to provide a life that is fully independent of monetary concerns.

But the economy of making each investment in the stock market does come with a price. It will require self-denial (the money invested is not spent for goods or services). Economy and self-denial, I'm afraid go hand-in-hand. To truly benefit from a stock market investment, a savings plan should be adopted and a systematic approach of dollar-cost-averaging (buying the same stock at different prices) should take place; and when the purchase should take place, economically clearly defined.

How to use your investment dollars will require forethought, patience and wisdom, for they are the pillars of economy.

Before making any stock market investments know exactly what you expect from those investments. Have the patience for the investments to fulfill the expectation, and the wisdom to know exactly how the investments will fulfill the expectation.

A forethought example:

I want every stock market investment to supply me with ever-increasing cash for the rest of my life. I want my retirement investment portfolio income to grow until the income from my portfolio replaces the income from my job when I retire.

A patience example:

I will make quarterly investments into each security owned to raise the cash dividend supplied by each stock market investment. I will start by owning three companies which will supply me with cash dividends every month of the year. I will also add the cash dividends to the quarterly investments. I will build this stock market retirement investment plan up until I own 500 shares of all three companies. Once 500 shares of each company are owned, I will begin investing in three more companies. Owning six companies will provide ever-increasing cash dividends twice a month, until I retire. My patience will eventually acquire 12 companies, providing me with income every week of the year.

A wisdom example:

I will only purchase those companies that have a historical record of raising their dividend each year. I know that a low 2% dividend paying stock is not necessarily bad. It means the company in question is a growth stock, using most of its profits to expand. A growth stock makes up for the lower dividend yield by faster stock appreciation in the marketplace (however, the company will still show a historical record of raising their dividend each year). I will diversify into 3 stocks, right from the get-go, even if it means I start off with as little as 5 shares of each company. I will not pay commission-fees. I will place emphasis on increasing the cash income paid to me from all my stock market retirement investments.

I will also: "Put less emphasis on increasing this week's pay, more emphasis on increasing my earning power by the right reading." - Donald Laird

For some right reading try the PREFACE from the book 'The Stockopoly Plan - Investing for Retirement.' Visit: http://www.thestockopolyplan.com

Charles M. O'Melia is an individual investor with almost 40 years of experience and passion for the stock market. The author of the book The Stockopoly Plan ? Investing for Retirement; published by American-Book Publishing. You can invest in the book at: http://www.pdbookstore.com/com files/pages/CharlesMOMelia.shtml

You have permission to publish this article either electronically or in print, free of charge, as long as the author bylines are included. A courtesy copy of your publication would be appreciated. Please email to mailto:charles@thestockopolyplan.com (Word Count 533)

---

Evaluating A Money Manager

Scams and frauds are designed to take your money through... Read More

Volatile Oil

The Light Crude Continuous Contract fell from $67.70 a barrel... Read More

Mutual Fund Returns May Not Be As They Seem!

Arthur Levitt, during his tenure at the SEC, experienced many... Read More

Why the Rich Keep Getting Richer

Rich people: fortunate, lucky, selfish, and arrogant? Or highly educated,... Read More

How to Choose the Right Share Class

You'll want to opt for the no-load or institutional share... Read More

Retirement Plan Considerations Cheat Sheet for Small Business

RETIREMENT PLAN CONSIDERATIONS are something every small business person needs... Read More

How to Analyze the Veracity of Investment Newsletters

When trying to analyze whether a promotional ad for an... Read More

Trading Systems

A trading system consists of a set of rules for... Read More

Now is the Time to Invest for Your Retirement!

Yes, it's the time we've all been waiting for?tax season!... Read More

What If You Absolutely Positively Could Not Lose - Would You Play the Stock Market?

Seniors on fixed incomes face a unique problem. Where do... Read More

Before You Start Investing

There maybe several reasons why you to want to invest... Read More

Wit and Wisdom on Money, Wall Street and Success - Part #4

Can you concisely summarize your investment philosophy in a few... Read More

Value Investing

By definition, value investing is the process of selecting stocks... Read More

Wit and Wisdom on Money, Wall Street and Success - Part #1

I love to collect quotes as they concisely promote a... Read More

Advice for International Investors on How to Safeguard Their Profits

What are the risks?Today, investors are increasingly turning to global... Read More

The High Price of Oil

In less than four years, the price of oil has... Read More

Finding the Perfect Company

The perfect company - it's the holy grail of the... Read More

Super Rules, OK?

Do you rule your superannuation or does it rule you?It's... Read More

A Gadfly On A Dinosaurs Butt, Or The Hood-winking Of The American Investor

Have you ever noticed how some words in the English... Read More

IF - The Wonders of Investing

If it seems... Read More

Investment Rowing

You have rowed a boat at some time haven't you?... Read More

Property Investment Just Got Exciting

There is an area in Brazil that has lower crime... Read More

Understanding The Real Rate of Return!

There is one indicator more than any other which determines... Read More

Caveat Emptor: You May Owe Taxes Despite 401(K) Losses!

One among many ways you lose money in non-indexed mutual... Read More

Day Trading the SP Futures with Initial S/R and the NYSE TICK

For instance, if the market moves up in the first... Read More

Success Trading for New Traders: What Does Bid and Ask Mean?

Do you ever wonder exactly what's going on in the... Read More

An Introduction to Offshore Investing

Once upon a time, offshore investment strategies were spoken of... Read More

Powerful Options Basics Lessons Improving your trading in 180 days.

An option is a traded security that is a derivative... Read More

Investing and Asset Allocation

Sometimes you spend sleepless nights worrying about which stocks to... Read More

Annuity Help

Many people today are looking for annuity help. The biggest... Read More

It Is Never Too Early To Start A Roth IRA!

The Roth is kind of weird until you get used... Read More

Sell Discipline for Investors: Importance and Execution

Investors usually don't have an aversion to buying an asset.... Read More

Investing in World Markets

There are many different ways to invest in world markets:... Read More