Ten Years to Retirement?
Stock Market Video
This Week's Fortune Cookie
In Case You Missed It
Today, I want to speak to a very specific group: those who
have 10 years to go before you reach retirement age.
I know that's a moving target. The age at which today's
workers become eligible for their full Social Security retirement
benefits is 66. (You can keep working and increase your eventual
monthly rate, but you must start taking payments when you reach
70.) And many workers-perhaps because they don't have enough
saved, perhaps because they're still enjoying work-aren't even
planning to retire until they have to. And finally, a lucky few
of you may be in your mid-40s and can see your way clear to
hanging up your helmet and gloves by the time you reach 55.
But that leaves a huge group of people in their early to
mid-50s who suddenly, after decades of work, find themselves just
one decade from calling it a career, taking the gold watch and
setting off into the sunset … and scared spitless about it.
That's because, if statistics are to be believed, only a
relatively small fraction of you are exactly where you want to be
in terms of your retirement funding. And many are nowhere even
close to where you'd like to be.
Don't feel like the Lone Ranger. Those retirement-preparedness
statistics also tell us that a vast majority of Americans do an
equally vast majority of their retirement savings in the last
decade before the Big Day itself.
At this point, you're hardly on your own. The companies who
want to help you are legion. You see their ads everywhere and
their brochures are beginning to overpower your snail-mail
basket. They're sending you invitations to gourmet dinners where
you will hear investment professionals talk about retirement
planning, retirement housing, retirement healthcare, retirement
homes, long-term health care and even prepaid funeral plots. The
AARP is sending you at least one solicitation a month and local
audiologists seem to regard you as a long-lost friend. How do you
decide what to do? (I mean about the retirement stuff. The answer
to the rest is the recycling bin.)
You may think that the big decision is which investment firm
to use to handle your money. That's what all those ads on The
Golf Channel want you to think.
But the real big decision is: How much of this are you going
to leave to others and how much are you going to do yourself?
The advantage of hiring others is that you don't have to do
much. Just send them the money on a continuing basis and read
your quarterly statements as they come in. (Your statements will
occasionally include news about how much the company is charging
you to do this work for you … in the fine print, of course) You
will be able to choose from a wide variety of index funds, sector
funds, balanced funds, funds sliced up by market cap, by growth
or value and by geographic region.
And if the markets go up, you stand a good chance of doing
well, because most of those funds will be aiming at matching the
growth of their target sector.
If markets go down, well, that happens from time to time.
Don't worry about it. Just keep sending the money. Eventually
things will go up. They always do
"May lose money. Not our fault.") You may also choose to have a
financial advisor to help you make decisions. I can't say a thing
against them. There are many good ones out there, and if you have
a complicated financial life that includes estate planning,
family corporations, complicated tax structures and other thorny
problems, you probably already have one.
But I'm going to advocate for making a significant allocation
of your retirement capital to the purchase of individual stocks
and for managing your buys and sells by yourself.
Using Cabot's investment advisories, you can adjust your
portfolio to match your own investing personality. You can get
specific buy and sell recommendations in growth stocks, value
, momentum stocks, small-cap stocks and options.
You won't have to sit passively by while the market chews your
portfolio to bits as it did in 2000 and 2008. You will be
guaranteed never to miss another bull market or stay fully
invested in a bear market.
You will have access to investing techniques that have been
helping individual investors to thrive for 43 years. And you will
be actively engaged in the process. You will make the buys and
execute the sells.
The deep satisfaction you will gain from taking charge of your
own retirement investing will be enormous. And the potential
rewards are substantial.
Cabot China & Emerging Markets Report
, which I write, earnings my subscribers a 51% gain in 2013.
Other Cabot advisories also outperformed broad market indexes by
Ten years to retirement? Time to get active. Take charge! We
Click here to view Cabot advisories.
Stock Market Video:
In this week's stock market video, Mike Cintolo takes a
thorough look at the recent weakness in the market and individual
stocks. There's something for every investor in this video:
Stocks that are holding up well (including many liquid leaders),
those that are not, how you should adjust your portfolio and what
to watch for in the days ahead. Click below to watch the
Here's this week's Fortune Cookie. Remember, you can always
view all previous
Fortune Cookies here
Contrary Opinion buttons here
Markets don't always do what you want them to and they sometimes
do things that no experts thought were even possible. When crises
hit, it's comforting to have Cabot's more than four decades of
investing experience on your side.
General Dwight Eisenhower, who ran the war in Europe for the
Allied Forces, used to say that plans were useless, but that
planning was essential. It sounds a little paradoxical, but if
you think of how unlikely it is that a plan will work perfectly
at every step, it makes sense. Even when a plan goes awry, the
planning you have done (which includes what to do when the plan
goes south) will keep your mission clear and your strategy on
point. In other words, if you're going to have to come up with
"hastily contrived answers," you'd better be sure you have some
planning under your belt.
In case you didn't get a chance to read all the issues of
Cabot Wealth Advisory
this week and want to catch up on any investing and stock tips
you might have missed, there are links below to each issue.
Cabot Wealth Advisory 3/10/14-Alternatives to
Tim Lutts, Chief Analyst for Cabot Stock of the Month, writes
in this issue about bitcoins, marijuana and fine art as
alternatives to stock investing (and offering a free download of
his wife's art book). He also gives the tenth in his series of
Cabot Wealth Advisory 3/11/14-Get Active in
Your Retirement Planning
In this issue, I start the conversation about the importance
of getting more active in working toward retirement. 401(k)s are
fine, but they're way too passive to achieve real gains against
inflation and predatory markets. Stock discussed:
Harman International (
Cabot Wealth Advisory 3/13/14-A Brief Series on
Stock Chart Reading
In this issue, Mike Cintolo, the growth guru behind Cabot Top
Ten Trader, begins a series of lessons on how to read stock
charts. This isn't a hugely technical set of arcane patterns,
rather it's a look at some practical ways to get buying and
selling cues from charts. Stock discussed:
Freescale Semiconductor (
Have a great weekend,
Chief Analyst of Cabot China & Emerging Markets Report
and Editor of Cabot Wealth Advisory