For a successful in the retirement investment plan in stock market to work, some ‘reasonably sure’ assumptions would have to be made:
The retirement investment plan must take into consideration the one prevailing constant in any stock market security – risk and uncertainty. Understanding that risk and uncertainty are the key factors that propels the return on investment in the stock market far beyond the returns of Passbook Savings Accounts, CD’s or Bonds are a start. The plan’s key factor would be to use the risk and uncertainty of a stock market security to its advantage.
The retirement investment plan should be founded on the belief that no one can successfully retire without financial freedom. Therefore, the retirement investment plan’s main role would be to supply you with income during your retirement years, while also taking into consideration the risk of inflation. This should be accomplished without having to touch the principle. The retirement investment plan would require discipline to accomplish its goal. The goal should be clear and specific, and the discipline necessary to accomplish the goal, just as clear and specific. Also, the retirement plan should not be financially out-of-reach, allowing as little as 100 dollars to begin, with as little as 10 dollars a quarter to continue.
The retirement investment plan’s return on investment should be aimed toward providing income, and the income from the holdings in the plan should accelerate every week of the year, until retirement. This should be the case, no matter what the price of the security at any given time in the market place. The retirement investment plan should be proven to you. Once proven, you must have the confidence in yourself to carry the plan forward. This do-it-yourself confidence means that the retirement plan’s ROI benefits only you and your family and no one else. A no-fee plan enhances the return on investment, allowing every cent put into the plan to work for you.
Companies owned in the retirement investment plan should have a historical record of raising their dividend every year. Therefore, a future dividend increase for the 10th or the 35th consecutive year in a row can be ‘reasonably sure.’ The guide for the selection of each security is its historical performance of rising dividends every year.
To receive the best return in the retirement investment plan, all companies in the plan would be purchased commission-free. All dividends from the companies would purchase more shares of each company commission-free. Therefore, every cent earned in ever-increasing cash dividends every quarter and any extra cash put into the retirement plan would work toward increasing the cash dividend.
Why bother beginning a retirement plan is best expressed, in my opinion, by a quote by Charles Kettering:
“I expect to spend the rest of my life in the future, so I want to be reasonably sure of what kind of future it’s going to be. That is my reason for planning.”
To read the PREFACE from the book ‘The Stockopoly Plan – Investing for Retirement’ visit http://www.thestockopolyplan.com
By : Charles M. O’Melia
Charles M. O’Melia is an individual investor with almost 40 years of experience and passion for the stock market. The author of the book The Stockopoly Plan – Investing for Retirement; published by American-Book Publishing. The book can be purchased at http://www.pdbookstore.com/comfiles/pages/CharlesMOMelia.shtml
Sunday, June 7, 2009
Monday, May 18, 2009
Stock Market Fundamentals : Time is the Essence
There are those who like to invest in stock market and shares with the belief that they are fuelling the economy or the industry they trust in. They ‘buy and hold’ shares for longer periods hoping to be rewarded with bigger fortune. This may sound appealing to most investors seeking long-term goals like saving for a college education or a peaceful retirement. But then the tour to the exchange is a bit adventurous, for the future is blurred and meets no end.
Though many advocate the ‘buy and hold’ philosophy on the grounds that it lowers your taxes and saves on your commission, the share holding may ultimately yield low profits. Eventually when the time comes to sell, it may be a bear market. Even if the market were to be bullish, there is the possibility of inflation eating into the dollars you made.
In the last 100 years in the history of trading there have been 30 occurrences of a bear market. The ‘corrections’ that followed never brought up the market to the post bear market position. It is a fact that every stock exchange faces a bear market periodically as a part of an established linear cycle. Though brokers always believe the market will come back, sometimes, it may be too little or too late for many.
While trading in shares or stocks, the foremost aim is to protect the original cost of your holding. In “market timing” you buy the shares and hold them in your portfolio on line for further trading. Shot term bullish and bear market trends are required to be monitored so that one knows the moment when to buy or sell. The ‘market timing’ investor aims to keep his losses low and protect his capital too. He is more sensitive to the volatility of stocks and shares. He believes he is lowering his risks and looking at long time trading gains that are consistent.
The ‘Buy and Hold’ believers have great faith in utility stocks. However exchange records reveal that after every crash the utility stocks index never manage to reach back to their old heights. Instead of parking your dollars in shares for a long and doubtful period, it is better to buy and sell over shorter periods of time pulling out and trading in according to what the stock exchange market prices indicate.
One must not mistake ‘market timing’ trading as speculation. Here the investor has a different goal. He is like the businessman who buys and holds goods as per the trends in the market. He will want to sell the latest goods in the market when they are still in demand and get rid of those that are no more in fashion.
Even high-quality stocks and shares have suffered from the bear market. ‘Buy and hold’ approach does not appeal to those who find reading the market regularly and keeping themselves alert at all times an exhaustive exercise.
But once you master the art ‘market timing’ by keeping your ears to the ground and acting on the signals, you will realize you have made your gains while others were simply waiting.
By : RNCOS
RNCOS (rncos.com), formed in 2002, offers outsourcing solutions for your business needs and aims to put an end to your information pursuit. We provide e-publishing solutions, which constitutes articles, newsletters and content for magazines and bespoke work. At RNCOS, we provide you complete e-publishing solutions and online help. We offer the best in technical writing, editing, and illustration for digital and printed documentation. For further information write us at info@rncos.com.
Though many advocate the ‘buy and hold’ philosophy on the grounds that it lowers your taxes and saves on your commission, the share holding may ultimately yield low profits. Eventually when the time comes to sell, it may be a bear market. Even if the market were to be bullish, there is the possibility of inflation eating into the dollars you made.
In the last 100 years in the history of trading there have been 30 occurrences of a bear market. The ‘corrections’ that followed never brought up the market to the post bear market position. It is a fact that every stock exchange faces a bear market periodically as a part of an established linear cycle. Though brokers always believe the market will come back, sometimes, it may be too little or too late for many.
While trading in shares or stocks, the foremost aim is to protect the original cost of your holding. In “market timing” you buy the shares and hold them in your portfolio on line for further trading. Shot term bullish and bear market trends are required to be monitored so that one knows the moment when to buy or sell. The ‘market timing’ investor aims to keep his losses low and protect his capital too. He is more sensitive to the volatility of stocks and shares. He believes he is lowering his risks and looking at long time trading gains that are consistent.
The ‘Buy and Hold’ believers have great faith in utility stocks. However exchange records reveal that after every crash the utility stocks index never manage to reach back to their old heights. Instead of parking your dollars in shares for a long and doubtful period, it is better to buy and sell over shorter periods of time pulling out and trading in according to what the stock exchange market prices indicate.
One must not mistake ‘market timing’ trading as speculation. Here the investor has a different goal. He is like the businessman who buys and holds goods as per the trends in the market. He will want to sell the latest goods in the market when they are still in demand and get rid of those that are no more in fashion.
Even high-quality stocks and shares have suffered from the bear market. ‘Buy and hold’ approach does not appeal to those who find reading the market regularly and keeping themselves alert at all times an exhaustive exercise.
But once you master the art ‘market timing’ by keeping your ears to the ground and acting on the signals, you will realize you have made your gains while others were simply waiting.
By : RNCOS
RNCOS (rncos.com), formed in 2002, offers outsourcing solutions for your business needs and aims to put an end to your information pursuit. We provide e-publishing solutions, which constitutes articles, newsletters and content for magazines and bespoke work. At RNCOS, we provide you complete e-publishing solutions and online help. We offer the best in technical writing, editing, and illustration for digital and printed documentation. For further information write us at info@rncos.com.
Wednesday, May 6, 2009
Stock Market Savvy Students
Investing with your Child
Many children study about business and finance in their schools. These small students are made to work on imaginary situations to make them realize the actual situations of the market. Children can learn a lot from the stock market to understand business. If your child is a stock market savvy, then you very well work with him.
You can actually invest and teach your child the basics of investing in the stock market. It is imperative for your child to know what exactly bonds and shares are and how do they function. As the concepts related to bonds are even difficult for adults to understand, present your child relevant books and magazines that explain them in detail. There are many books available in the market and your local library.
Many children study about business and finance in their schools. These small students are made to work on imaginary situations to make them realize the actual situations of the market. Children can learn a lot from the stock market to understand business. If your child is a stock market savvy, then you very well work with him.
You can actually invest and teach your child the basics of investing in the stock market. It is imperative for your child to know what exactly bonds and shares are and how do they function. As the concepts related to bonds are even difficult for adults to understand, present your child relevant books and magazines that explain them in detail. There are many books available in the market and your local library.
However, the basic task is to explain the child the concepts. There are also guides available in the market that tell you how to invest. There are also many television shows on many business channels that let your child have an in-depth look in investing but make sure that your child does not get carried away with the lure of investing heavily in the stock market.
Once your child has understood the concept of investing, you may look for a certain bond or share that you may be interested in. In this time, you may also look for the business that interests you. The founders of these businesses are usually colorful personalities and have very unique tale to narrate.
Now that your child understands the concepts behind investing, you can begin your search for a specific stock or bond. Take this time to research about specific businesses in which you are interested. Quite often, these businesses have interesting stories and their founders may be colorful characters with inspirational tales to narrate. Investing requires more than just throwing money on bonds and shares. Every abbreviation in the stock market denotes a very unique business. If you teach this to your child, he will learn more about the stock market. Another interesting activity will be to find the story behind investment houses. Ask your child to find answers to the questions such as, "What is Charles Schwab known for?" or "When did Merrill Lynch become a listed company?" Moreover, there are other social groups that are as popular for investing. A popular example of investment group for making wise decisions at stock market is the Beardstown Ladies. A book named "The Beardstown Ladies' Common-Sense Investment Guide" that is written by these ladies will prove to be extremely useful to you and your child.
Teaching your child about the stock market is a rewarding experience in the sense that your child will learn about real-world application and you will spend quality time together, which is the best investment on a higher plane.
By : Frank Marque
Frank Marque is the administrator and delegate of E Commerce Needs, your online source for all electronic commmerce. Visit us online at: www.ecommerceneeds.com .E Commerce Needs, your online source for all electronic commmerce.
Once your child has understood the concept of investing, you may look for a certain bond or share that you may be interested in. In this time, you may also look for the business that interests you. The founders of these businesses are usually colorful personalities and have very unique tale to narrate.
Now that your child understands the concepts behind investing, you can begin your search for a specific stock or bond. Take this time to research about specific businesses in which you are interested. Quite often, these businesses have interesting stories and their founders may be colorful characters with inspirational tales to narrate. Investing requires more than just throwing money on bonds and shares. Every abbreviation in the stock market denotes a very unique business. If you teach this to your child, he will learn more about the stock market. Another interesting activity will be to find the story behind investment houses. Ask your child to find answers to the questions such as, "What is Charles Schwab known for?" or "When did Merrill Lynch become a listed company?" Moreover, there are other social groups that are as popular for investing. A popular example of investment group for making wise decisions at stock market is the Beardstown Ladies. A book named "The Beardstown Ladies' Common-Sense Investment Guide" that is written by these ladies will prove to be extremely useful to you and your child.
Teaching your child about the stock market is a rewarding experience in the sense that your child will learn about real-world application and you will spend quality time together, which is the best investment on a higher plane.
By : Frank Marque
Frank Marque is the administrator and delegate of E Commerce Needs, your online source for all electronic commmerce. Visit us online at: www.ecommerceneeds.com .E Commerce Needs, your online source for all electronic commmerce.
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