Many financial experts embrace grandiose theories and use mathematical formulas to convince the vast sea of ​​American investors to accept their vision of the perfect American retirement account balance. They make statements like “by the time you’re sixty-five you should have X $ in your retirement wallet to cover health care costs or to live the perfect dream of exotic travel and an extravagant lifestyle of spending, spending, and spending.” Retirement plans and accounts, however, are like the “beauty” that is in the “eye of the beholder.” My perfect retirement lifestyle isn’t necessarily that of my cousin or my next-door neighbor. Different interests, needs and wants We all share one thing in common: we are dealing in a risky business called Investing.

It may not be a forgotten conclusion; that Penny Stock Investors are investing for their retirement. Some will develop an investment portfolio to meet their current business needs, whatever they may be. Some may invest just to prove themselves and others that they can, while others invest as a business to generate their monthly income in order to meet their obligations. Others invest for a purpose, accumulate a large amount of cash, these are often called “Day Traders”.

This article is not an attempt to convince anyone how to invest or why, it is simply to give another point of view on the motivation to invest. The need to think about retirement, whether you are a full-time or just starting out or have been a “bi-vocational” investor for years.

Regardless of your motivation, let me make a case for you to invest with one eye looking towards the road to retirement, regardless of how long or how short it may be. We all instinctively know that one day we will “give up”, “give up” or “wear ourselves out”! Now I’m not trying to be pessimistic or the bearer of bad news, especially for those of you in your twenties and thirties. But what I want to impress everyone is that, just like in the market, life has no guarantees! By that I mean that life and the market share the same propensity for change, volatility, risk and, dare I say, fees, charges and fees. Why do you think the game of Monopoly is so popular? Because Monopoly, like real life, reflects the whole concept of “Time and opportunity”.

For those of you who are always the winners at Monopoly, remember this, life is not a board game and you will never be able to memorize all the cards that will be thrown at you. This is like investing! Multiple volatile conditions affect your investments 24/7 and there is nothing that can prevent Time and Chance from happening to you or anyone else. Given that we are all equipped with this basic knowledge, wouldn’t it be wise to at least look ahead and develop a basic vision for yourself of what kind of retirement you would like to have and at what age? Here are some topics for your consideration.

Housing arrangements – Family residence, condo / townhouse, retirement village? How much will that cost based on the current economy and then calculate from your current age to your perfect retirement age, how many years is multiplied by 3% for inflation? You will need to recheck this each year to adjust for current inflation rates. Currently, inflation is not really a problem, but it will not always be this way.

Health care costs– We really don’t know what these will be any more than we can actually count the stars in the night sky. This is true for most investors living in the United States today. Since this is a high risk area, we need an alternative plan that is not just the accumulation of cash. There are two key concepts you need to study “Mortality and Morbidity”. They will make you feel very happy! Not!

Food – Now, here is a topic on which full 2 ​​hour seminars have been based. Many people living today who belong to the Boomer generation can remember when the cost of a loaf of bread was .75

Pennies and a cup of coffee at a restaurant cost 25 cents. How about the amazing edible egg? from 1985 to 1987 the price per dozen ranged from 42.9 cents to 51.5 cents.

(University of California Cooperative Extension Number 85 June 30, 1988)

Currently in 2012, a dozen large grade “A” eggs are selling for $ 1.7059, while organic brown shell eggs in a carton range between $ 2.61 and $ 3.16.

(http://www.ams.usda.gov/pymarketnews.htm or [email protected])

Based on these three areas of life alone, we can deduce that living will be more expensive in the future than it is now. And this without taking into account the punitive tax system that we find ourselves in in the United States today or the new taxes that have existed and will be voted on before and during our retirement.

What areas can we offset risk with careful planning? Well, on the one hand, risk can be reduced by a well thought out investment plan that focuses on an annual return that beats inflation and keeps up with the market without offering bad news such as a negative return. I think you would agree that these types of accounts would be the perfect holding area for your Bread and Butter retirement fund. What are these types of accounts? Well, they are widely available in all cities, states, and the entire nation, which is why they are indexed annuities.

The indexed annuity with security and a provision of collateral income can give you lifetime income protection and while you wait to start the income, the account can grow and capitalize on the returns on the interest earned and on the taxes it would have paid if the money were in another type of interest-bearing account. And never give you a negative feedback.

Some investors work with a forward-looking strategy and determine what the Social Security income will be when they reach their maximum retirement age or when they can take it sooner and start building that amount of cash reserves or buying an annuity with that amount of money. keep up with inflation. Then stick around happily being the raging stock investor that you are on the inside.

Now combine this with a disciplined investment strategy and you have a retirement focused plan where you can rest assured that your retirement funds will always be safe and growing, while at the same time focusing on the business at hand, which is to be the best. penny stock investor that can be.

All the best and happy investment!

Randall Cox

www.PennyStockSuccessTips.com

PS: In my next article titled “Creating an Investment Safety Net” With Outdated Insurance. “I am going to reveal little-known tips and strategies that most married couples have not considered. These concepts will help married couples who have a investor-minded partner and another who is so scared of risking their financial future that they won’t even hand out a quarter on a payphone for fear of losing it and buying business.