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An Economical Retirement Investment Plan
You have permission to publish this article either electronically or in print, free of charge, as long as the author bylines are included. A courtesy copy of your publication would be appreciated. Please email to mailto:charles@thestockopolyplan.com (Word Count 533)
An Economical Retirement Investment Plan
The practice of economy, directed toward a retirement investment plan in the stock market, is in itself a source of great revenue. It is the art of making the most out of every stock market investment, with the definite purpose or goal being to provide a life that is fully independent of monetary concerns.
But the economy of making each investment in the stock market does come with a price. It will require self-denial (the money invested is not spent for goods or services). Economy and self-denial, I’m afraid go hand-in-hand. To truly benefit from a stock market investment, a savings plan should be adopted and a systematic approach of dollar-cost-averaging (buying the same stock at different prices) should take place; and when the purchase should take place, economically clearly defined.
How to use your investment dollars will require forethought, patience and wisdom, for they are the pillars of economy.
Before making any stock market investments know exactly what you expect from those investments. Have the patience for the investments to fulfill the expectation, and the wisdom to know exactly how the investments will fulfill the expectation.
A forethought example:
I want every stock market investment to supply me with ever-increasing cash for the rest of my life. I want my retirement investment portfolio income to grow until the income from my portfolio replaces the income from my job when I retire.
A patience example:
I will make quarterly investments into each security owned to raise the cash dividend supplied by each stock market investment. I will
start by owning three companies which will supply me with cash dividends every month of the year. I will also add the cash dividends to the quarterly investments. I will build this stock market retirement investment plan up until I own 500 shares of all three companies. Once 500 shares of each company are owned, I will begin investing in three more companies. Owning six companies will provide ever-increasing cash dividends twice a month, until I retire. My patience will eventually acquire 12 companies, providing me with income every week of the year.
A wisdom example:
I will only purchase those companies that have a historical record of raising their dividend each year. I know that a low 2% dividend paying stock is not necessarily bad. It means the company in question is a growth stock, using most of its profits to expand. A growth stock makes up for the lower dividend yield by faster stock appreciation in the marketplace (however, the company will still show a historical record of raising their dividend each year). I will diversify into 3 stocks, right from the get-go, even if it means I start off with as little as 5 shares of each company. I will not pay commission-fees. I will place emphasis on increasing the cash income paid to me from all my stock market retirement investments.
I will also: “Put less emphasis on increasing this week’s pay, more emphasis on increasing my earning power by the right reading.” - Donald Laird
For some right reading try the PREFACE from the book ‘The Stockopoly Plan - Investing for Retirement.’ Visit: http://www.thestockopolyplan.com
About the Author
Charles M. O’Melia is an individual investor with almost 40 years of experience and passion for the stock market. The author of the book The Stockopoly Plan – Investing for Retirement; publishedby American-Book Publishing. You can invest in the book at http://www.pdbookstore.com/comfiles/pages/CharlesMOMelia.shtml
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