Why I invest for retirement  

redmustang91 57M  
8734 posts
7/28/2005 8:34 am

Last Read:
3/5/2006 9:27 pm

Why I invest for retirement

Sophie Tucker famously observed: "I have been rich and I have been poor. Rich is better!"

I was a starving student with bricks and boards for my books. I recall enjoying a Mexican meal for $2.45 including tip! Those college days were fun, but it is not so much fun to be old and poor.

I will get the maximum social security benefit and it will have the money to pay. But I am not just relying on that. I have been putting money away in retirement accounts, and investing in the stock market. Yes stocks are risky and I have lost money sometimes, but I have also made money. On balance I am way ahead.

The risk and penalty from not investing is much worse than the risk of investing.

On average since 1929, stocks have gone up at 13% a year. Unlike real estate there are not property taxes, insurance, maintenace expenses, repairs, squirrely tenants or other nuisances to deal with. I invest through a discount broker on the computer. No irritating stockbrokers to talk with or to steal my money. No load mutual funds are the main vehicle I use, but I also have some individual stocks.

The hype about real estate blinds people to the gains possible in the stock market. The best portfolios are diversified in many ways, so do not overlook the stock market potential over the next few decades. Make haste slowly.

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