If Your Long Term Retirement Account Isn’t Extremely Boring….

By: ispeculatornew
Date posted: 06.27.2013 (3:00 am) | Write a Comment  (0 Comments)

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boringThe other day I met a girl who was discussing how she was so excited to be buying Apple and wanted to get involved in Facebook . As you probably know, I’m more than sold on both stocks and would happily buy Apple or Facebook (if it were public). She then proceeded to explain to me that she had 3-4K saved for retirement and investing into those 2 companies would be so “exciting”, it was going to feel as if she were part of these 2 incredible success stories. That is when I had to take a step back.

I Love Excitement/Adrenaline As Much As The Next Guy

I mean look at my trades, I’ve discussed volatile stocks such as Facebook (FB), trade long and short tech strategies. I also discuss some longer term speculative picks in the tech newsletter. Outside of trading there are also a ton of different and exciting things that I like to do. I do however have a great distinction between the different types of trading. I am willing to risk much more on money that I can afford to lose. For those trading accounts, I am willing to take risks if the expected payout is good enough.

For my retirement account, I don’t see the point of trying to make things overly exciting. My goal is simply to have progress over the years, powered mostly by money I can set aside every month, but also a clear and consistent trading strategy.

You Have To Ask Yourself: “What Is My Objective?”

When trying to prepare your retirement money, what are you trying to do exactly? Hit a homerun? Then maybe you could add some penny stocks, wager some money on sports or in a casino even. Personally, as much as I like trading, I have a very clearly defined strategy for my retirement account, one that I know will work well over the long term even though there is absolutely no chance that I will hit a homerun a triple my money over a few weeks or even a few months. Why? Because it’s very clear to me.

Honestly, do you care if your retirement account is extremely boring to track? I don’t.

Possible Winning Strategies For Long Term Retirement Accounts

There are many different things that can be done. You can build a diversified ETF portfolio that gives you exposure to the main asset classes while also offering incredible diversification, all for a very reasonable price. Another strategy that has been discussed quite a bit is dividend investing, which will build you a steady and growing flow of passive income. I’ve also seen some very successful investors do a combination of both of those in order to gain exposure to different types of assets while also counting on steady dividends.

How “boring” is your retirement account?

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