An Economical Retirement Investment Plan

The practice of economy, directed toward a retirement investment plan in stock market, is in itself a source of great revenue. It is art of making most out of every stock market investment, with definite purpose or goal being to provide a life that is fully independent of monetary concerns.

But economy of making each investment in stock market does come with a price. It will require self-denial (the money invested is not spent for goods or services). Economy and self-denial, I’m afraid go hand-in-hand. To truly benefit from a stock market investment, a savings plan should be adopted and a systematic approach of dollar-cost-averaging (buying same stock at different prices) should take place; and when purchase should take place, economically clearly defined.

How to use your investment dollars will require forethought, patience and wisdom, for they are pillars of economy.

Before making any stock market investments know exactly what you expect from those investments. Have patience for investments to fulfill expectation, and wisdom to know exactly how investments will fulfill expectation.

A forethought example:

I want every stock market investment to supply me with ever-increasing cash for rest of my life. I want my retirement investment portfolio income to grow until income from my portfolio replaces income from my job when I retire.

Some of latest gizmos would immediately crop up in our minds as most probable of answers. But do these gizmos really deserve veneration that they receive. True, they have revolutionized lives. But they have been characterized with impermanence. Another new invention and earlier invention is nowhere to be seen.

One invention of man which has withstood challenges of time is a home. The earlier users of home might have constructed it just for shelter purposes. But it has assumed new roles in a person’s life. Besides providing shelter, it has become an indispensable status symbol. Home has continued adopting new fashions and styles, and thus still holds same esteemed position that it held in primitive ages.

People revere their houses, and would think twice before taking any step which imperils its existence. Since secured loans entail keeping home as collateral, most people who value their houses would dread taking loan. A single default may lead to ones house being repossessed. And with this all dreams which customer and his/ her spouse may have dreamt with their home as a scenic backdrop fades forever.

This single fact has led a large number of people, including those who do not have luxury of homes, to look for different options, in spite of secured loans offering a much better rate of interest.

“All that is gold does not glitter; not all those that wander are lost”. So said J.R.R.Tolkien, an English novelist and scholar. Going by logic it would be unprofessional to not cater to vast population who do not want to keep their homes to any kind of obligation, or who do not have a home in first place, on grounds that they can cause default in payments.

To fill up this vacuum and to cater to this vast population which was till yet unsatisfied or was debarred from credit process at very initial stages because of absence of home, concept of unsecured loans was launched.