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by: Charles M O'Melia
For a successful retirement investment plan to work in the
stock market, some ‘reasonably sure’ assumptions
would have to be made:
The retirement investment plan must take into consideration
the one prevailing constant in any stock market security –
risk and uncertainty. Understanding that risk and uncertainty
are the key factors that propels the return on investment
in the stock market far beyond the returns of Passbook Savings
Accounts, CD’s or Bonds are a start. The plan’s
key factor would be to use the risk and uncertainty of a stock
market security to its advantage.
The retirement investment plan should be founded on the belief
that no one can successfully retire without financial freedom.
Therefore, the retirement investment plan’s main role
would be to supply you with income during your retirement
years, while also taking into consideration the risk of inflation.
This should be accomplished without having to touch the principle.
The retirement investment plan would require discipline to
accomplish its goal. The goal should be clear and specific,
and the discipline necessary to accomplish the goal, just
as clear and specific. Also, the retirement plan should not
be financially out-of-reach, allowing as little as 100 dollars
to begin, with as little as 10 dollars a quarter to continue.
The retirement investment plan’s return on investment
should be aimed toward providing income, and the income from
the holdings in the plan should accelerate every week of the
year, until retirement. This should be the case, no matter
what the price of the security at any given time in the market
place. The retirement investment plan should be proven to
you. Once proven, you must have the confidence in yourself
to carry the plan forward. This do-it-yourself confidence
means that the retirement plan’s ROI benefits only you
and your family and no one else. A no-fee plan enhances the
return on investment, allowing every cent put into the plan
to work for you.
Companies owned in the retirement investment plan should
have a historical record of raising their dividend every year.
Therefore, a future dividend increase for the 10th or the
35th consecutive year in a row can be ‘reasonably sure.’
The guide for the selection of each security is its historical
performance of rising dividends every year.
To receive the best return in the retirement investment plan,
all companies in the plan would be purchased commission-free.
All dividends from the companies would purchase more shares
of each company commission-free. Therefore, every cent earned
in ever-increasing cash dividends every quarter and any extra
cash put into the retirement plan would work toward increasing
the cash dividend.
Why bother beginning a retirement plan is best expressed,
in my opinion, by a quote by Charles Kettering:
“I expect to spend the rest of my life in the future,
so I want to be reasonably sure of what kind of future it’s
going to be. That is my reason for planning.”
To read the PREFACE from the book ‘The Stockopoly Plan
– Investing for Retirement’ visit http://www.thestockopolyplan.com
You have permission to this article either electronically
or in print as long as the author bylines are included, with
a live link and the article is not changed in any way. Please
provide a courtesy e-mail to charles@thestockopolyplan.com
telling where the article was published. (Word Count 501)
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; published by American-Book Publishing. The book
can be purchased at http://www.pdbookstore.com/comfiles/pages/CharlesMOMelia.shtml
chassmo99@yahoo.com
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