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Getting your retirement investment right is a matter of playing your cards right. You need to have an investment plan that includes a combination of safe and sound investment strategies combined with an optimum amount of risk-taking which, over time, will boost your average rate of returns.
One important tip that any financial consultant will give you is to start saving early. The power of compounding of returns over time is too powerful to neglect.
For example, if an investor begins with $100,000, the value of this portfolio after 30 years when compounded at 5% will be $444,671. On the other hand, the same portfolio would be worth $1,052,470 if the rate is increased to 8%. So you see, even a small difference in percentage can lead to a substantial increase in the final value of a portfolio. A good investor will watch their portfolio closely to ensure its success over time.
Safe investment options
The stock market has always been a lucrative (returns of 10.4% a year on average between 1926 and 2006, versus just 5.9% for bonds) but volatile (a bear market) investment option. For an investor looking for a safer retirement investment, government treasury bills and short-term government bonds are a good option. Presently, the returns for these are not more than 5% but it can change with time.
Retirement Investment simplified
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Don't Ignore Investing in Stocks Nobody Follows
By Simon Giannakis
 A look into why avoiding heavily followed stocks and focusing on boring or ignored stocks can lead to excessive investment returns.
Intended Audience
Personal Investors managing their own portfolio looking for greater than market returns, while willing to take on additional risk and increase their time involvement during the investment process.
Summary Points to Take Away
* Invest in companies with the greatest potential for a share price that widely differs from the actual share price value (i.e. the imperfect betting line).
* Follows the similar understanding alongside the economics theory of abnormal profits, which is, the more competitors the lower probability of beating your competition and earning profits above market (i.e. abnormal returns).
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Frequently Asked Mutual Fund Questions |
By M. L. Williams
Mutual funds are so popular nowadays that there are actually more mutual funds available than there are stocks of individual companies. Below we present some of the most popular questions about mutual funds along with some short answers to the questions.
Top Mutual Fund Questions Of 2008 - What Is The History Of Mutual Funds?
Mutual funds actually go all the way back to the Netherlands in the early 1800s. Mutual funds were then called an investment trust (which most still are today). Mutual funds came to America in 1889 with the New York Stock Trust. Many mutual funds in America were started in Boston, which was a financial center of some renown back in the 1800s.
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Whether you're looking to invest, cut taxes, save money, or retire worry-free, Money helps you reach your financial goals. Each issue of Money offers smart, no-nonsense tips and strategies to make the most of your money. Plus, you'll receive tips on the hottest stocks and mutual funds.
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By Kathy Kristof
 List Price: $14.95 Purchase For: $10.17
This book is for novice investors and for those who are rethinking their investments in response to market uncertainty. Personal finance columnist Kathy Kristof takes the mystery and anxiety out of investing by keeping the choices manageable and the focus on what matters most: knowing when to buy and sell; protecting your money; and reaching your goals safely and sooner. She walks readers through the entire investment cycle and helps you think about your entire financial life and how different investments might help you reach your goals. This expanded edition has new information about 529 college savings plans, annuities, Roth IRAs, reverse mortgages, and why declining markets can be good for you. It includes a cautionary look at home mortgages as investments. There's even a portfolio for the lazy investor. Kristof's loyal readership and the success of this book's first edition demonstrate that she understands what's on the minds of investors as intimately as she knows what's happening in financial markets..
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