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Retirement Investment Plan | Stock Market Investing

Posted by GuestPoster in Personal Finances

If you are developing your retirement investment plan, you may want to look at it again. The changes in the stock market and other financial markets may have an impact on it. In addition, the rising costs of living may impact your retirement investment strategy as well.

When you sketched out your retirement investment plan with your financial planning advisor, you probably had a certain target number in mind that you were shooting for. It was probably based on a mix between the current cost of living back then and what you projected it might be in the future. You probably based your retirement investment plan on numbers that were way too low.

The reality may be that the cost of living is going to be much higher that you thought. Take the following into consideration. The cost of healthcare has been rising at an enormous rate for the last 20 years.

On top of that, life expectancy in the US is rising and there is no reason to think it will slow down. In fact, when they set the retirement age for Social Security, the life expectancy was around 62 years old, which is what the retirement age is. They never expected to have to pay out.

If you are about to retire, you probably figured that good stocks to invest in were conservative ones like dividend stocks and income investments. Even though these large cap stocks are safer, it has gone down quite a bit since the financial crisis hit.  Your stock market investing strategy probably took a hit on your retirement investment portfolio.

The mix of much high cost of living, long life expectancy and a lower return on investments than you expected, you might not have a strong enough retirement investment strategy to take the hit. I would seriously reconsider if your retirement funds will be enough to get you through. There are alternative investment strategies to make up for it but you have to get creative and take some risks.