Retirement Investing: 3 Myths That Can Slow You Down
One of the issues that keeps cropping up is that of retirement. Indeed, many people have expressed to me a worry about retirement planning. I think most of this worry comes from a couple of related facts:
- With Social Security and company pensions at risk, your retirement income is more and more likely to come from investments.
- The stock market is having a bit of trouble right now, and that worries people, putting them off of retirement investing.
According to the Motley Fool, there are 3 myths that can slow you down when it comes to retirement planning. Here they are (with my thoughts):
- It’s too early to plan for retirement. Even if you are not thinking about early retirement, it is never too early to get started. In fact, even if you are 16 and working your first job, the best time to start your retirement investing is now. Indeed, the earlier you start, the better off you will be. The power of compounding interest can work in your favor for much longer if you start now. Anyone with an income can open a Roth account, and for the timid, there are always bonds, CDs and high yield savings accounts.
- The “I Can’t Beat Federer” Syndome. The Motley Fool describes this as a belief that you can’t be better than the best, so you don’t even bother. You’ll probably never be a better investor than Warren Buffett, so why try? The reality is that you shouldn’t be comparing yourself to other investors anyway. You should be comparing yourself to you. Concentrate on improving your net worth and padding your retirement account with solid investments.
- Planning for retirement is hard. You might be surprised at how easy retirement planning can be if you make a goal and a plan to reach that goal. There are many retirement planning calculators and budget programs that can help you figure out what you need to do to reach your goal. And there are, of course, financial planners (only go with the fee-based) who can help you develop a plan as well.
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.
Tags: retirement investing, retirement planning, investing blog, investing myths,
stock market, investments, Warren Buffett
