Most people have had a very cursory introduction to the financial markets. Their exposure to equities usually involves a 401k that they received from their job. The majority believes that the best way to invest in the markets is to put money into stocks or mutual funds and hold it there until they retire. This thinking is very flawed and will not ensure that you are ready to retire on your schedule or that you would even be able to enjoy a comfortable retirement.
So where did this line of thinking start and why is it still proposed by financial managers today? Well if you think about the time in a person’s life where they are most likely to work and invest, it would be in their late 20’s to 50’s. Most people are involved in building their career and contributing to their company retirement plans. If we look at the largest part of the population, the baby boomers (born… Continue Reading
