For a successful retirement investment plan to work in the stock market, some 'reasonably sure' assumptions would have to be made:
The retirement investment plan must take into consideration the one prevailing constant in any stock market security ? risk and uncertainty. Understanding that risk and uncertainty are the key factors that propels the return on investment in the stock market far beyond the returns of Passbook Savings Accounts, CD's or Bonds are a start. The plan's key factor would be to use the risk and uncertainty of a stock market security to its advantage.
The retirement investment plan should be founded on the belief that no one can successfully retire without financial freedom. Therefore, the retirement investment plan's main role would be to supply you with income during your retirement years, while also taking into consideration the risk of inflation. This should be accomplished without having to touch the principle.
The retirement investment plan would require discipline to accomplish its goal. The goal should be clear and specific, and the discipline necessary to accomplish the goal, just as clear and specific. Also, the retirement plan should not be financially out-of-reach, allowing as little as 100 dollars to begin, with as little as 10 dollars a quarter to continue.
The retirement investment plan's return on investment should be aimed toward providing income, and the income from the holdings in the plan should accelerate every week of the year, until retirement. This should be the case, no matter what the price of the security at any given time in the market place.
The retirement investment plan should be proven to you. Once proven, you must have the confidence in yourself to carry the plan forward. This do-it-yourself confidence means that the retirement plan's ROI benefits only you and your family and no one else. A no-fee plan enhances the return on investment, allowing every cent put into the plan to work for you.
Companies owned in the retirement investment plan should have a historical record of raising their dividend every year. Therefore, a future dividend increase for the 10th or the 35th consecutive year in a row can be 'reasonably sure.' The guide for the selection of each security is its historical performance of rising dividends every year.
To receive the best return in the retirement investment plan, all companies in the plan would be purchased commission-free. All dividends from the companies would purchase more shares of each company commission-free. Therefore, every cent earned in ever-increasing cash dividends every quarter and any extra cash put into the retirement plan would work toward increasing the cash dividend.
Why bother beginning a retirement plan is best expressed, in my opinion, by a quote by Charles Kettering:
"I expect to spend the rest of my life in the future, so I want to be reasonably sure of what kind of future it's going to be. That is my reason for planning."
To read the PREFACE from the book 'The Stockopoly Plan ? Investing for Retirement' visit http://www.thestockopolyplan.com
You have permission to this article either electronically or in print as long as the author bylines are included, with a live link and the article is not changed in any way. Please provide a courtesy e-mail to charles@thestockopolyplan.com telling where the article was published. (Word Count 501)
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. The book can be purchased at http://www.pdbookstore.com/com files/pages/CharlesMOMelia.shtml
"All human power is a compound of time and patience!"... Read More
Investors are always looking for the best investments that will... Read More
The U.S. economic data reported this week showed strong output... Read More
Gearing is where you borrow money to invest. As already... Read More
An option is a derivative trading product that is best... Read More
The Nature of Penny StocksFor anyone new to investing in... Read More
When it comes time to retire how many people would... Read More
You all know what CYA stands for. Of course, Cover... Read More
It always amazes me how much stock market investors resemble... Read More
(Please have a glass of water within reach before reading... Read More
Disgruntled investors are going after Wall Street once again, this... Read More
In this "special report", I want to pose a few... Read More
Computerized investing. Online investing. Have you taken the next step... Read More
The Light Crude Continuous Contract closed at $66.13 a barrel... Read More
One of the leading traders on Chicago Mercantile Exchange, because... Read More
It is important to answer the following questions before you... Read More
How much are you willing to pay for a tank... Read More
Some time ago I attended a seminar where participants were... Read More
"Risk comes from not knowing what you're doing!" Warren Buffett... Read More
When thinking about the investors business daily responsibilities in today’s... Read More
Its only been about 5 years since we had major... Read More
If Johannes Kepler, the renowned 17th century astronomer and discoverer... Read More
The financial characteristics of the automobile dealership are attractive:". .... Read More
Non-indexed mutual funds try to keep it secret that actively... Read More
"Financial planners are like dentists: they may occasionally inflict pain,... Read More
The most basic aspect of trading is learning to differentiate... Read More
Find out everything you need to know about buy to... Read More
"The American Age of Inflation is finished." So says economist... Read More
Let me start by answering that question...if an annuity fits... Read More
Asset allocation is a critical component of investing success. Both... Read More
A trading system consists of a set of rules for... Read More
I recently received an e-mail from a young lady who... Read More
Do you ever wonder exactly what's going on in the... Read More
I said last week that money doesn't generally buy happiness,... Read More
Gearing is where you borrow money to invest. As already... Read More
With so many financial advisors trying to woo you with... Read More
Everyone knows T Rex was the most fearsome of all... Read More
More and more workers are leaving their jobs and taking... Read More
Q: My youngest son wants to borrow $5,000 to start... Read More
For instance, if the market moves up in the first... Read More
Young readers know that March 4th is the birthday of... Read More
A strategic question. Why indeed?1. A penny share would usually... Read More
Those unfamiliar with the process of making and managing investments... Read More
Many people have, at one time or another, taken some... Read More
Relaxing in Style: Florida Investment PropertiesIn Florida, relaxing in the... Read More
Despite what some people may lead you to believe; day... Read More
One of the leading traders on Chicago Mercantile Exchange, because... Read More
"There is nothing more frightful than ignorance in action!" Johann... Read More
Press releases are a means through which companies can keep... Read More
Here is a sample of the last newsletter:SP500 Last Signal... Read More
A fickle stock market encourages good-humored mockery.Recently, as I watched... Read More
Are you as good an investor as you think? Do... Read More
Over the course of the past two months, readers have... Read More
In part 1 of this article I started to look... Read More
While it is rather rare that value gurus sell stocks... Read More
Q: What have been the most successful approaches to attracting... Read More
A SEP is a special type of IRA. Under a... Read More
There maybe several reasons why you to want to invest... Read More
Sales Leaseback compared to traditional property investmentCan a Sales Leaseback... Read More
Where is the second biggest deposit of oil reserves in... Read More
First, I need to explain about e-currencies or digital currencies.... Read More
There is a cat fight brewing between Direcway LLC, Starband... Read More
There are many steps in calculating the fair value of... Read More
The perfect company - it's the holy grail of the... Read More
All this talk about Investing is encouraging lately. Over the... Read More
If you are doing your own investing in the stock... Read More
Investing |