In the wake of the 2008 meltdown, many investors have banished the stock market, with no plans to return. That’s potentially a losing strategy, especially with interest rates on savings accounts and CDs at practically zero.
Rather than rely upon traditional savings accounts, CDs or bonds to create a thoroughly “safe” investment portfolio, Stanzione encourages rotation back into stocks, especially for those looking toward retirement in 10 or 15 years. Only stocks can provide the rate of return necessary to avoid a retirement income crisis.
“If you’re 50 or older, now is not the time to get conservative. Medical advances and healthy lifestyle choices are helping people to live longer, but many financial planners and investment firms are not factoring this reality into their models. Coasting into one’s golden years without enough money is a setup for disaster,” explained Stanzione.
The “money master” Stanzione suggests the following strategies for maximizing one’s investment returns:
- Avoid needless fees and costs as much as possible. Discount brokers and low-cost Exchange Traded Funds (ETFs) are a wise choice. On the other hand, steer clear of managers that claim to have a silver bullet for any market.
- Educate yourself. Spend an hour or two a week doing research on simple, effective strategies. There’s no reason to let managers earn so much commission on work that is, in all honesty, not that complicated.
- Maximize whatever tax benefits are available to you. Likewise, liquidate or move investment income in the most tax-efficient way possible. Again, a little education here goes a long way.
- The sky is not falling, and apocalyptic, fear-based investment strategies generally underperform. The strategies that have always worked will continue to work. If the world really does end, then money won’t matter anyway.
- The United States remains the most dynamic market in the world. Those who persevere in spite of occasional bumps and corrections will see their portfolio grow exponentially.
- Let go of the urge to check your stocks 10 times a day. Get rid of your stock apps. Investing is about the long view; it’s not supposed to be exciting. Snap decisions are usually bad ones, anyway.
- Adopt a disciplined trading strategy with clear parameters. Create a system or checklist to ensure that you’re sticking to the discipline and not just working from emotions.
Living longer doesn’t have to mean running out of money or subsisting on as little as possible. Smart, disciplined investing, with an emphasis on the US stock market, can provide capital to fund an ideal and virtually unlimited retirement.
To learn more about trading and investing go to: http://www.winonmarkets.net