Dear Mr. Market:
How many times have we heard the comment that investing in the stock market is like gambling in Las Vegas? The market allows people to build up their account balances and confidence only to watch it all be taken back and possibly more. Many people experience this in ‘Sin City’ as their stacks of chips build up only to watch the casino take them all back in what seems like the blink of an eye. While we could certainly debate the similarities and differences between Vegas casinos and the stock market there is no doubt that both have left investors feeling as though the system is rigged against them.
How nice would it be if you could tip the odds in your favor in Vegas? What if you could see what the next card or roll of the dice would be or simply improve your chances of winning? If investing is truly like gambling what if you could increase the odds that your retirement savings would grow more and be there for you when you need them in the future?
Recently we have heard from several investors about a very powerful and informative television report featured on Frontline titled “The Retirement Gamble”. This presentation pulls back the curtains and exposes many of the dark and hidden secrets of the financial industry that the average investor is not aware of. There are several factors that investors can control and limit the negative impact on their portfolio resulting in a profound difference on long-term portfolio returns. We encourage everyone to watch the online presentation of “The Retirement Gamble” that first aired on April 23, 2013. The presentation is approximately 50 minutes long however it could possibly be the most critical education you’ll ever receive on investing.
This show does a tremendous job of getting down to the basics and avoiding all the financial jargon that clutters the industry. It empowers the average investor to understand many of the key aspects of investing that they need to be aware of and more importantly what they can control. Below are some of the key points that can be taken away from this program along with some charts and our thoughts: Continue reading