Investing For And During Retirement
Successful investing for retirement and in retirement is not that complicated. The planning process can be complicated, such as when to liquidate certain investments, how much cash to keep on hand, and sticking to your plan, but the investing process isn’t hard at all.
The so-called “experts” in the financial media and financial media itself and even most financial advisory firms want you to think it’s hard and that it’s something that isn’t possible for most of us. They are happy to make their money to scare you into thinking so.
The truth is that the odds of successful investing are hugely stacked in your favor. All you need to do is not get in the way of those odds.
However, It does require your belief in the following three facts:
- The sole purpose of investing is to grow money (after all costs including tax) at a rate that, on average, is greater than inflation. This is the way you get wealthier.
- The global economy on average grows at a faster rate than average global inflation. The world is getting richer. This trend will continue.
- It’s the great companies of the world (NOT THE GOVERNMENT) that grow the global economy and the growth in their profits and stock value reflects this.
Therefore, if you wish to become wealthier, all you need to do is be an owner of the great companies of the world and remain an owner of them for life.
From time to time there will be temporary interruptions to the growing economy of the world and the great companies creating that growth. It is precisely at this moment when most investors, especially those not working with a trusted advisor, fail.
The long-term upward trend will continue soon enough and your patience will be rewarded with gains greater than inflation and the wealthier you will become.
Anyone who ever tried to convince you otherwise is nothing more than a salesman of snake oil.
Quotes
I want to leave you with some quotes from some of the greatest investors that have ever lived.
“The best way to measure your investing success is not by whether you’re beating the market but by whether you’ve put in place a financial plan and a behavioral discipline that are likely to get you where you want to go.” -Benjamin Graham (Warren Buffett often calls Graham is mentor)
“The stock market is a device to transfer money from the impatient to the patient.” -Warren Buffett
“The idea that a bell rings to signal when to get into or out of the stock market is simply not credible. After nearly fifty years in this business, I don’t know anybody who has done it successfully and consistently. I don’t even know anybody who knows anybody who has.” -Jack Bogle (Vanguard Founder)
“A market downturn doesn’t bother me. It is an opportunity to increase our ownership of great companies with great management at good prices.” -Warren Buffett
Summary
The markets will reward your patience if you just get out of the way and let them. The markets reward patience every single time.
Stay patient and may the odds be ever in your favor.
You need a plan
Retiring - without a plan - is simply a plan to run out of money. Your NRECA R&S Pension is not a plan. Your NRECA 401k is not a plan. Those are only pieces in the retirement planning puzzle.
At 80/20 Financial Services we specialize in helping cooperative employees plan their retirement. We can show you how to turn your 401k and your R&S lump sum into a stream of income just like when you were working while also helping you achieve your desired financial outcomes in retirement.
The consultation is free and without obligation. Contact us to set up a consultation.
For more articles about retirement planning and investing click here.
Brian Coleman/Electric Cooperative Retirement Specialist
80/20 Financial Services is an Independent Registered Investment Advisory Firm. We help Electric Cooperative Employees create their retirement income and investment plans. We turn your NRECA 401k and R&S Pension into a plan that will provide you lifetime income and can change your family's legacy.
Photo by Duane Mendes on Unsplash
