Stock Market Retirement Investment Plan
For a successful retirement investment plan to work in the
stock market, 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.comYou have permission to this article either electronically or
in print as long as the author bylines are included, with a
live link and the article is not changed in any way. Please
provide a courtesy e-mail to charles@thestockopolyplan.com
telling where the article was published. (Word Count 501)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.shtmlCharles O'Melia
