Stock market investment is important to save up for one’s retirement.
How to make money and fund the retirement portfolio is very important for most businessmen at the stock market.
If you are not quite aggressive in your stock investing strategies, you may not make enough money for retirement. On the other hand, if you are very impulsive in your strategy, you might realize that you lost most of your retirement funds just when you are about to retire.
The key to retirement investment is to find and keep proper balance between conservative and impulsive.
There is no hard and fast rule on how to deal with this. You have to see what will work best for you, taking into consideration the circumstances, risks and time before the actual retirement comes.
Stock investors face tough choices in preparation for their retirement
Even if the stock market goes well for a long period of time, it can kill in the short run.
The time left on investment has the greatest threat on your income. The rule is, as your retirement comes nearer and nearer, you should lessen your exposure to risks on stocks.
What if the 401(k) match lost?
The tough economy may be the strongest compelling force that would make your employer cut you off on the race. What is needed to be done when this situation happens?
Is there still a chance to redeem the 401(k)?
Most participants of the 401(k) retirement plan would want to extend working for another half decade or even more. A collapse of the stock market could crush these retirement plans to half their size.
Would there be a way to bring back to life the 401(k) in an adequate time preferably before retirement comes.
Shunning the Longevity Risk through Investment
Longevity risk is an old type of risk but not usually given the same kind of importance as that of the other types such as the market risk, inflation, and economic risk. Good news and bad news. Good news is that life span has been extended by modern health care. Bad news is that the retirement plan once made by people may not reach the time of our passing.
A second look at stock’s role in retirement
What is really the significance of stocks in the investment plan for retirement?
Conventional thinking suggests to just subtract your age from a hundred. The result becomes the percentage of the stocks in the portfolio then the remaining percentages shall be divided between bonds and cash.
Take a bigger leap with stocks for retirement
Is there a definite rule about how many percent of stocks should you have when you are nearing retirement? Financial advisers suggest that you balance the stocks and bonds in your portfolio.
In order to find the balance, subtract your age from 100 then the remaining value shall be the percent of stocks.