Retirement Wealth Requires A Vision

Wednesday was not only April Fools Day, it was also National Fun at Work Day. While I find it somewhat funny that the two share the same day, I also find it very poignant. We are always being told to “Do you what you love.” It took me a long time to finally escape from the proverbial rat race, but I am so relieved that I did.

Was that kind of inspiration and spiritual uplift worth the cost? I believe so. At it’s apex, Apollo and the NASA budget were costing about 4% of the federal budget of the U.S. (today’s NASA budget is about 0.5%). As a nation we spend more on coffee and donuts each year than on exploring new places, including on our own world. Shouldn’t a great nation, a great species, be willing to spend a small fraction of its enormous National Wealth Center on inspirational, educational, and intangible things like space exploration? You could ask similar questions about art, or music, or theatre. Exploring new worlds lifts us up the same way.

Most people simply don’t know about all of their choices. The traditional custodians provide some options, primarily in the stocks, mutual funds and government bonds. They advise you National Wealth Center invest and hold”. That doesn’t require much work on anyone’s part and it doesn’t allow your money to “work” for you, as hard as it could.

As long as the account is worth less than $2 million, estate planning with IRAs is very simple. You simply designate a beneficiary. If you and your spouse have Roth accounts, it’s even simpler. When one of you dies, the two accounts can be combined. This will allow the surviving spouse to continue to earn interest and take regular distributions, without having to pay taxes on them.

Western states were not so fortunate. In Wisconsin, 41 of the state’s 111 banks went out of business. In response, the Wisconsin Bankers’ Association announced it would guarantee currency issued by the remaining banks.

Although the single currency briefly dropped to 1.4163 in Asian morning due to the selloff in Asian stock markets, the pair rebounded to 1.4223 in Asian midday on short-covering. Later, despite euro’s brief breach of Tuesday’s low of 1.4151 to 1.4143 in European morning, price rebounded strongly on active cross buying of eur/chf after SNB announced measures to curb franc’s strength and climbed to 1.4345 after the release of stronger-than-expected EU June retail sales (0.9% m/m and -0.4% y/y vs the forecast of 0.5% and -1.0% respectively). However, price retreated to 1.4259 in NY morning due to the selloff in U.S. stock markets and cross selling of euro before staging a recovery to 1.4341 in NY afternoon.

Invest in the Stock Market. Although investing in the stock market can be risky, it is still one of the best ways to save money for retirement in the long term. This is because the interest rate on the typical savings account is extremely low, generally 2%-3% (depending upon the amount on deposit). By contrast, earnings on the stock market have historically come close to 10%. If you want to minimize your risk, simply diversify your investment portfolio. For instance, in addition to high-risk stock, mix in bonds and money market accounts.