Is Investing In Stocks Old School?
Have ya heard? Traditional retirement may be on its way out, it’s becoming old school. Traditional retirement life may be on its way out but is the traditional methods of retirement planning, investing in stocks, also becoming obsolete?
The Old Retirement Life
Yes the days where retirement life meant a permanent vacation is out. Those were the days. Your parents worked 40 long, grueling, tedious years longing for the day that they turned 62 and could retire. Their only motivating push was reaching retirement age so they could live the easy, blissful retirement life they had dreamed about for 40 years. Their only vision was getting out of the work force so they could retire to golfing, fishing or shopping “twenty-four-seven”.
Your parents generation did not have to worry about investing in stocks or anything else. They relied less on personal money management and more on outside money managers. More of their retirement money was professionaly managed in pensions so they paid little attention to where their retirement money was invested.
The New Retirement Life
Fast forward to today. You have to worry about investing in stocks; less retirement money is coming out of pensions. If you have a 401(k), 403(b) or IRA with investments in stocks or mutual funds you have no choice but to be your own money manager. Whether or not you are skilled at investing in stocks that produce a good rate of return or not is besides the point. The point is, the new retirement will require you to be more financially reliant and that will require knowing the in’s and out’s of investing in stocks.
Embrace The Change
Change is good, if you keep up with it. Managing your own retirement money is the future so embrace it, don’t run from it. Having professionals manage retirement money through pensions had its advantages, but the one disadvantage was loss of control. When you manage your own money, you control it. You get to decide when to buy, hold or sell. You get to design a retirement plan that fits your financial tolerance, embrace the new retirement.