Income Investing Secrets
The Dow Jones Industrial Average imploded from just under 14,000 in November 2007 to below 7,000 in March 2009, and is still far below that Nov 07 peak.
Therefore, many retirees and near retirees are now free-falling with a parachute only half as big. With the market prices of their stocks down, seniors have to sell more shares to pay their bills.
Leaving them with fewer shares they can sell next time they have to raise cash for an emergency.
No wonder they feel sick to their stomachs when they receive their brokerage, IRA and mutual fund statements.
It's likely that many people you know are now wondering whether they'll ever take that special cruise, give great presents to their grandchildren or receive the best medical care if they suffer a prolonged illness.
The Dow first broke 10,000 in 1999, so for the past 10 years investments for capital gains have gone nowhere . . . SLOWLY
Chances are, nobody told them this could happen. They simply followed the mainstream advice to load their 401(k) plans, IRAs and mutual funds up with "growth stocks" to sell many years later at a huge profit.
Despite following the conventional financial wisdom, many senior citizens are now asking what happened to that worry-free fun and relaxation they promised themselves after a long career of hard work.
Many people in their fifties and early sixties are wondering when -- or even if -- they'll be able to retire.
Many today wonder whether they'll be able to leave an estate to their families or a legacy to their favorite charity.
The more you learn about the stock market, the more you understand that basing your retirement on continuous stock market price rises is like building a house on the edge of a steep dirt cliff. Sooner or later, a hard rain will fall.
The Shocking Truth About "Investing" for Capital Gains That Wall Street Doesn't Want You to Understand
Serious investors who would never day trade, buy and sell penny stocks or splurge on Internet chat room stock tips . . .
. . . failed to understand that buying stocks and bonds in hopes of later selling at a higher price is an intrinsically risky form of gambling no matter how long in the future that "later" is. A 10-year "retirement trade" is not more virtuous or safer than a 10-minute day trade -- it just takes a lot longer.
Clearly, you'd have more fun if you took your retirement fund to Vegas.
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