Stock Market

There are many people who have but all of their faith the Stock Market and that is certainly a option. The problem is you are putting all of you eggs in one basket. A better approach is to make the Stock Market part of an overall plan. Having a sound plan will give you advantages like

Help you to avoid unexpected surprises
All your retirement plan to function smoothly regardless if the markets are good or bad
These things are important when you take into account certain numbers:
63% probability that if a couple reaches age 65 one of them will live to age 95
$100 of buying power in 1980 would take $264.12 to have the same purchasing power in 2010
Healthcare costs are rising at a rate of 8.3%
Between the years of 2000 – 2009 the S&P 500 had negative returns in 4 years
70% of the people survived believe that they can pull 10% from their retirement accounts in spite of the fact that the average real return from 1950 thru 2009 is 6.8%
This means that in order to be realistic and have a successful retirement plan in place you need to have options outside of the Stock Market in your portfolio.

 

Stock Market

There Are Other Investments Besides The Stock Market

You should take the time to research options like bonds, commodities etc. You should also consider seeking professional help. While there are many things that you can do on your own, you should have a professional review your plan to make sure you are not missing anything. A good plan will include:

Growth

Access

Predictable Income Post Retirement

 

You should make sure and take care of any risk management needs first. Risk management means getting the things insured that you can least afford to lose. Do not assume that you will live forever and that if anything bad happens it will be to the other person. Remember from my viewpoint YOU are the other person. Take the time to complete a will among other things.

The Stock Market should be part of any planning process but it should not be the entire process.

Stock Market

Disclosure

You should not use the information given in the article “Alternatives To The Stock Market.” in place of advice given from a professional adviser. Your situation could be and in most likely unique to you. This information may or may not fit your personal situation.