Golden Ages Can Also Mean Golden Wealth

Have you begun to plan for your retirement? You may be thinking “How in the world is that possible with all of my debt and bills?” However, everyone should plan for their retirement. Even if they start late, they should start as soon as possible when the stock market is going good.

Based on dollar cost averaging (discussed in a future article) – buy small amounts regularly. I will not go through the math now, but the principle is quite straightforward – and yes, it works in other currencies too. When you buy regularly, you will buy a larger number of shares when the price is low, and fewer when the price is high, giving you better gains than buying at an average price. And you will have far better gains than buying at the highest price.

You can further improve on this by buying a bit more than your regular amount when prices are low, and trimming your purchases when prices are higher. Just do not stop investing when prices rise, or you may regret you bought too little of a great investment. The biggest advantage of this approach is that it encourages you to save a regular amount and invest it, rather than put off investing until you have more money put aside. I suspect this principle is what inspired folks like Sir John Templeton to launch mutual (investment) fund companies. These funds are ideal for regular investments of small amounts. Although, admittedly, they work even better with large amounts.

Income protection safeguards your retirement fund in two ways: it allows you to continue saving or at least prevents you from unnecessarily depleting your retirement savings. Being unable to work can have a crippling effect on your contributions. Those without insurance are tempted to withdraw from their retirement plans, even if they incur penalties. Income protection safeguards against employment interruptions, which can lead to retirement fund depletion.

Anyone can begin saving and planning for the safety and financial security of their future. Retirement should not be a time of worry, yet so many end up in a situation where they struggle and fight to remain in control. Many end up destitute and in homes later with nothing to look forward to but death. This does not have to be the case. Do what you can now to get ready to enjoy the Golden Years. Take away stress and worry from yourself, your spouse, your children, and your grandchildren. Leave a legacy of fun and wisdom. Save now and you will not have to pay later. You will be able to live the lifestyle that you are accustomed to and the one you aspire too. You will be able to maintain, pay the bills, and even travel and do extras if you want.

Sir John Templeton was a long-term investor who was very optimistic about the prospects for the world. I can almost hear him say, “there is no time in history where people were as well off as they are today.” His forecast for the Dow Jones Industrial Average at the end of this century – 1 million. To put that in context, at the end of the last century (I use December 31, 1999) the Dow was at 11,500, and it only requires a 4.6% annual growth to get to 1 million in 100 years.

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