Is Your Nest Egg Enough to Carry You Through Your Retirement Years?
Managing Your Portfolio Now That You are Retired
You worked so hard to build your nest egg and now that you are retired, you want to hold onto as much of it as you can. Your number one goal is to have that nest egg carry you for the rest of your life, no matter how long that may be.
In its simplest form, our advice is:
- Take Charge of Your Own Destiny – Self Manage Your Portfolio
- Learn the Rules of Engagement – Before You Make Your First Move!
- Devour Information on the Internet and Apply Your Own Judgment
- Build a Library of Books and Tools
- Subscribe to Timely Newsletters
Depending on the size of your nest egg and the size and age of your family, you may still want to provide for them in some fashion, but now is the time to think long and hard about ways to retain your wealth so it carries you past your income generating years.
There are plenty of people who provide advice on how to start, grow, and manage a portfolio, but there are very few who offer assistance in holding onto the money you accumulated against the ravages of inflation, the cost of living, and the never-ending devaluation of the dollar.
Self-Managing Your Retirement Portfolio
The one thing you now have that you did not have during your active working years is time. As the Rolling Stones first observed in 1964, “Time in on my side.” How you use that time, is entirely up to you, but may we suggest that this is a good time to become an active manager of your investment portfolio. If you played an active role in building your portfolio, this will be easy. If not, you can learn how to manage your portfolio and invest some of that new found time in an avocation that will surely pay dividends down the road.
Certainly recognize you are moving into uncharted waters as your own portfolio manager and, as they say in London, be careful to “mind the gap.” An old proverb says, “A fool and his money are soon parted,” so we urge you to begin slowly and build in plenty of safeguards. You are, after all not playing with the house’s money but your own and when it is gone, it is much harder to retrieve. You no longer have your wealth building years and skills to rely upon.
Rules of Engagement
Like any new venture, spend the time to learn the rules of engagement and rest assured, dear friend, investing is not a game. Investing is a serious, serious business and one that will require all the skills, acumen and dedication you used to build your wealth in the first place.
Build yourself a library of books about investing and be sure to take everything that everyone says with that proverbial grain of salt. There are literally thousands of books for making money in the stock market and for every piece of advice; you can find someone else offering the exact opposite advice.
Best Resources for Retirees
Having quoted the old proverb about fools, reading the Motley Fool is one place to begin your journey into the uncharted waters of portfolio management. Here is a link to what Investopedia considers the Ten Books Every Investor Should Read. We suggest reading them all before making any moves.
Go into the stock market with your eyes wide open and both hands firmly placed on your wallet. There are plenty of sharks who would like nothing more than to take your money and they are good at it.
Using the Internet as a Resource
While the old maxim that you get what you pay for is true most of the time, there are plenty of tools available via the internet that can help you hold onto what you have. With the exception of making an actual trade, nearly everything you need to manage your portfolio is available at no cost through the internet.
Finding the Tools
We set out to find the tools that were formerly available through a brokerage account and were surprised to see that nearly everything we used to pay for is now available at no cost. The easiest way is to simply google the term(s) you are looking for and click through the first few pages. It is also a good idea to read some reviews about the various tools you find to see what other people think about them.
We organized our tools into the following categories and then went looking for free versions for each category. You can do the same. Simply create bookmarks for each category, google them, tag them and get to work. You will be amazed at the amount of information available. Now it’s time to apply your own judgment. Try a few things “on paper,” test the water, and observe the results. If there is one rule about investing and the stock market, it is that “anything can happen at any time for any reason.” Just because something worked last year or even five minutes ago, does not mean it will work the same way again.
- Understanding the Stock Market
- Training on How to Invest
- Investment Strategies and Pros and Cons of Each
- Stock Analysis Tools
- Advice from the Experts
- Screening Tools
- Fundamental Analysis Methods and Tools
- Technical Analysis Methods and Tools
- Timing the Market
- Day Trading
- Swing Trading
- Options and All the Strategies with Them
- Index Funds
Subscribe to Timely Newsletters
As the publisher of a paid investment newsletter, we are admittedly biased, but we think timely newsletters are a very good investment for the average investor. Good newsletters provide current and objective advice and insights that are not necessarily available from free resources and newsletters.
A Summary and a Guide to Retaining Your Wealth after Retirement
When you are ready to begin managing your own portfolio, here are some tips to make the journey successful:
- Diversify – Never put all your assets in one basket – consider stocks, bonds, mutual funds, real estate, CD’s – there are plenty of ways to diversify
- Watch Your Money Like a Hawk – Pay careful attention to everything that happens with your money because it is very hard to replace
- Consider Second Career – Look for ways to supplement your nest egg before you get too old and consider managing your own portfolio as a great avocation and second career.