7 Deadly Sins | COMMON SENSE

3 Retirement Questions For 20 Year Olds

December 03, 2009 By: Trent Category: Financial Info, Long term savings, Option Trading, Pension 401k, Stock Trading, insurance info

Arcording to Trent of the “Simple Dollar”

Three Questions to ask yourself if you are in your 20’s and want to save for Retirement.

If money were no object, what would you do with your time?
Are you frugal?
Are you interested in having children?

: Image by doctrader via Flickr

The Simple answer is….

Just worry about the saving for now – don’t sweat the details.

Many people get overly wrought about making sure that their money is in the “perfect” investment. To put it simply, your investment choice is secondary – by a long shot – to simply saving your money as soon as possible and as much as possible. Start saving now. If you don’t know what to invest in, just ask for suggestions from the representative there. Since it’s a tax-deferred retirement account, you can make investment changes later on without any tax issues.

Doctrader says: The most import aspects of long term planing is learning there are market cycles. If you can identify the market cycles, you will be miles ahead in your investment choices! During bull markets, you should have your money invested in high growth areas of the market through an index fund. When the bull market begins to wane, you should move your long term investments to a money market position or a cash position. If you chose a “stable fund” alternative to cash, you run the risk of losing money due to inflation or hidden land mines within a “stable fund”.

Stable funds usually are guaranteed by an insurance companies. Insurance companies are subjected to the 7 deadly sins of investing.

These are:

regulation
investigation
litigation
arbitration
capitalization
Taxation
politicization

These 7 deadly sins of investing will impact your future retirement. If you are serious about your future, your best option is to “create a product or service” which can launch your career into a small business. After all, our founding fathers were small businesses. In fact, most of new jobs created today and in the future will belong to small businesses.

My suggestion, turn your passion into a profitable small business!

doctrader