How You Can Build a Fortune in Retirement by Trading Online

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How You Can Build a Fortune in Retirement by Trading Online


2011

By Ric Dalberri, Founder of Retirement USA

 

There is a certain romanticism when
trading on the stock market. Wall Street is an exciting place where millions of
dollars are traded and made or lost every day. For most of us Wall Steet is
only a place we’ve seen in the movies or on the news but know it exists. If
ever you can, go there. You will be amazed. It’s wild, frantic, and ………(fill in
the blank )

The generation known as the Baby Boomers are known to take
risks. So when investing, must be careful to due diligence in making a decision
that could bring financial ruin. Look at all the Ponzi schemes in past few
years. The internet can literally put virtually any kind of transaction in
front of you. Thus online trading. In reality, one could with a few clicks make
thousands or loose millions in a few clicks of the mouse. Caviot Emptor….’let
the buyer beware’.

Well, at least that is the allure of online trading. There
are some very good things about the movement that has been afoot in the last
few years to put your financial world at your fingertips on the internet. Some
of those advantages are?

.. Your bank balances are only a few clicks away & your
investments are there for you on a daily basis. You can have updates emailed to
you. This type of investing can raise your awareness or lower your tolerance
when you see what’s happening on a daily or hourly basis.

… Online services have lowered trading fees and made it more convenient for
you. However, by not meeting with a broker, you may lose contact with their
expertise.

… Warning! Your online trading can become not only entertaining but also
obsessive. Rather than putting your money into an investment that will meet
your long term goals, you may look to do short term more risky investments.

. The sudden interest in online trading has made more people knowledgeable
about the stock market and what their money is doing. There is no downside to
becoming educated about this important part of your financial planning.

As with anything in life, common sense and balance is
crucial not to let yourself be obsessed with investing. Baby Boomers have a lot
of time on their hands and often find themselves without enough money at the
end of the month. So, it’s easy to see online investing as a way to supplement
their income. Be careful….You may lose it all.

If there was any mantra, we must have about investing, especially if we are
using online tools, it is, ?Be prudent and be informed.? There is no stand-in
for getting some education and doing some analysis into the technicalities of
the stock market and into the strategies that are most likely to be a success
for you. The stock market is no place for get rich quick schemes because they
are more likely to result in ? get poor quick outcomes.

But for the smart baby boomer who does his or her homework
and knows what they are doing and gets good advice from investment analysts
that know the market, online investing can become a good addition to your financial
planning arsenal and be a lot of fun for you as well.