For those of you who find yourselves frustrated trying to plan for retirement, will find little consolation in knowing that the problem continues to become more complex each day. Let’s review some of the problems facing today’s investors by starting with the stock market. The day by day gyrations in the market resulting from every emotional trend one could possibly conceive of in the US and abroad have become routine. As a result, there are days when the market can go up or down depending on what happens thousands of miles away with a particular bank in Greece. This emotional knee jerk reaction in market valuations makes the process of trying to plan and accumulate savings for retirement during one’s productivity years an ongoing nightmare. This is not an attempt to dismiss the fact that global economic trends around the world do not have a dominant effect on the US stock market. As a matter of fact it probably has to much effect when you consider what the average US investor can really do about the economy in Greece Let’s not forget our own wake up call in the US when the stock market collapsed in 2008 and many people ready for retirement suddenly found their retirement funds had dropped in value to such a level that retirement was no longer possible. Adding further to this gloomy out look today are other economy problems such as high unemployment, an economy which is slow to recover, gradual increases in the cost of living, hollow political promises which often seem unrealistic, a national debt which keeps climbing at an alarming rate, and the prospect of additional taxes just to mention a few. Living during these times of uncertainty is not much of a confidence builder for today’s potential retiree trying to set money aside for retirement. So what does the investor do during these turbulent times; set on the side line and wait for a better day. Well maybe, but for some retirees, there is not much choice; you have to invest today to earn enough money to be able to retire at some future point. Here are a few suggestions to consider for those investors moving forward:
You need a customized plan that meets your requirements for the simple reason no two investors are exactly alike. To activate this step you need an experience financial advisor who you can trust and takes the time to assess your financial situation. You should feel comfortable enough with your advisor that any questions you may ask now or in the future will be quickly addressed in enough detail that you understand the answers completely.
Read your financial statements carefully. If you fail to understand any part of the statement, ask questions. In the final analysis, it is your money that is being invested and therefore you have the most to loose when questions go unanswered and financial problems arise. If you have any doubts about your investments get a second opinion. Most scams result from compliancy on the part of the investor who assumes that everyone can be trusted to make the right decisions when it comes to their financial interest.
There is always the element of risk in the area of investments which unfortunately is greater today than it has been in several years. For this reason alone it is important that you acquire the best professional help you can find. But above all, take time to understand your investments. After all, it’s not rocket science and your financial future may depend on it.
SOURCE: http://www.examiner.com/startup-business-in-newark/planning-for-retirement-turbulent-times
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