Investing and Retirement Part 1: Stocks

When planning for retirement, it’s important to get a head start in order to protect your future. Some workers are lucky enough to receive pensions or company matching retirement plans, but not everyone is. Those who aren’t lucky enough or work in the private sector should consider investing options to protect themselves.

Some of these options include the stock market, IRAs, annuities, and basic investment funds. We’ll start with stocks, the most basic and known investment tool in the modern world. Large companies will sell stock on the exchanges and allow individuals to collect dividends then cash in on the stocks when they sell. Over time, the stock markets will steadily rise, so if you invested thirty years ago until today, you would likely have substantially more money today than you did thirty years ago. This is assuming you continued to pay into stocks and collect more amounts.

Though stocks are the most basic and commonly known, there are some negatives, most notably the volatility. Everyone remembers the 2008 housing crash which subsequently killed growth in the markets for years. One important aspect of the market place is to remember to stand pat even at low points, perhaps even buy in.

Before purchasing stocks or investing in general it is important to do research into the methods that would most suit your needs and capabilities. If you work full-time like many people and lack the requisite time to do the research, you can always pay a broker to trade and grow your fund for you. If you have questions about growing your finances be sure to call the Center of Financial, Legal & Tax, Inc. to see what options you have.