Investing in the Stock Market Sensibly - A Must for the Individual Who Wishes to be Prepared for Retirement

As one who grew up in an era in which interest rates and inflation were often high, I could never have imagined that today, a major bank would take out a half-page advertisement boasting of a Certificate of Deposit that returns seven tenths of a per cent on a minimum $1000 investment.  This translates to an individual going to the bank with $1000 and coming away a year from now with $1007!  The cost of traveling to and from the bank to initiate the certificate will equal the one-year investment return for many!
The low interest rate phenomenon currently being experienced in our country is courtesy of the Federal Reserve Board, which seeks to stimulate the economy and borrowing by artificially keeping rates low indefinitely. The pathetic rate of return on "safe" investments is bemoaned by many, including seniors who are looking for income, and it also serves to demonstrate why one must always have some of their money in the stock market, not in highly speculative, risky companies or funds, but in stock index funds whose cost of transaction is low and which are highly diversified, providing some protection from downturns in the economy.

One fund in which I significantly invested both for retirement and non-retirement purposes (Janus Global Life Sciences Fund) returned a staggering 55.84% in 2013, far outpacing the Standard and Poor's 500 Index and Dow Jones Industrial Average.  That whopping gain, of course, cannot be expected every year, but this fund boasts an average annual return of 10.98% per year since its inception in 1998, which also is spectacular, given that many of those years were within a near-Depression. Those that are in the 15% tax bracket enjoy the benefit of no tax liability for capital gains when stock is sold at a profit.  
Those who cite the risk of being invested in the stock market, shying away from it, are also engaging in risk, that they will outlive their money.  There are sensible ways to invest.  It is a critical component for the individual that wishes to maintain their lifestyle in retirement.

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

Tom January 02, 2014 at 07:56 PM
The longer you REMAIN in the market the lower the risk. The 80 year average return on the S&P is over 8 percent. Warren Buffet is the guru in this area, buy only what you understand and believe in and hold it for a long long time. The approach enabled him to become the second richest person in America. Oren's advice re retirement and the need to be in the market could not be more on.
Liberty Reserve February 14, 2014 at 07:55 AM
Safe Investments-Deposited $1,500 and Received $4,500 daily for 7 days You just need to make a direct deposit to our account. Your investment is totally safe because payments are sent directly to the account from which the investment has been made.You do not need to register, this is a full automatic program. By investing with SafeInvestments.org.uk. you declare that you have read, understood, and accepted our Terms of Service Started Plan 1 200% daily for 7 days Minimum deposit 100 USD Payments 7 days a week Full profit 1400% Accept LR and PM No principal return Payouts in 0-24 hours Normal Plan 2 300% daily for 7 days Minimum deposit 1500 USD Payments 7 days a week Full profit 2100% Accept LR and PM No principal return Payouts in 0-24 hours Premium Plan 3 500% daily for 7 days Minimum deposit 5000 USD Payments 7 days a week Full profit 3500% Accept LR and PM No principal return Payouts in 0-24 hours Vip Plan 4 1000% daily for 5 days Minimum deposit 20000 USD Payments 7 days a week Full profit 5000% Accept LR and PM No principal return Payouts in 0-24 hour Perfect Money Proof of Payment http://www.payinghyiponline.com/Proofofpayment/safeinvestments.jpg Invest Here http://www.safeinvestments.org.uk/?payinghyips If you don't get paid I will return 200% of your deposit.100% Riks Free http://www.payinghyiponline.com/safeinvestments.html


More »
Got a question? Something on your mind? Talk to your community, directly.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors.What's on your mind?What's on your mind?Make an announcement, speak your mind, or sell somethingPost something