Stock Market Retirement Investment Plan

For a successful retirement investment plan to work in thestock market, some ‘reasonably sure’ assumptions would haveto be made:

The retirement investment plan must take into considerationthe one prevailing constant in any stock market security –risk and uncertainty. Understanding that risk and uncertaintyare the key factors that propels the return on investment in thestock market far beyond the returns of Passbook SavingsAccounts, CD’s or Bonds are a start. The plan’s key factorwould be to use the risk and uncertainty of a stock marketsecurity to its advantage.

The retirement investment plan should be founded on the beliefthat no one can successfully retire without financial freedom.Therefore, the retirement investment plan’s main role would beto supply you with income during your retirement years, whilealso taking into consideration the risk of inflation. Thisshould be accomplished without having to touch the principle.

The retirement investment plan would require discipline toaccomplish its goal. The goal should be clear and specific,and the discipline necessary to accomplish the goal, just asclear and specific. Also, the retirement plan should not befinancially out-of-reach, allowing as little as 100 dollars tobegin, with as little as 10 dollars a quarter to continue.

The retirement investment plan’s return on investment shouldbe aimed toward providing income, and the income from theholdings in the plan should accelerate every week of the year,until retirement. This should be the case, no matter what theprice of the security at any given time in the market place.

The retirement investment plan should be proven to you. Onceproven, you must have the confidence in yourself to carry theplan forward. This do-it-yourself confidence means that theretirement plan’s ROI benefits only you and your family and noone 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 havea historical record of raising their dividend every year.Therefore, a future dividend increase for the 10th or the 35thconsecutive year in a row can be ‘reasonably sure.’ The guidefor the selection of each security is its historical performanceof 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 ofeach company commission-free. Therefore, every cent earned inever-increasing cash dividends every quarter and any extracash put into the retirement plan would work toward increasingthe cash dividend.

Why bother beginning a retirement plan is best expressed, inmy opinion, by a quote by Charles Kettering:

“I expect to spend the rest of my life in the future, so Iwant to be reasonably sure of what kind of future it’s goingto 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

About the Author
Charles M. O’Melia is an individual investor with almost 40 years of experience and passion for the stock market. The authorof the book The Stockopoly Plan – Investing for Retirement; publishedby American-Book Publishing. The book can be purchased at http://www.pdbookstore.com/comfiles/pages/CharlesMOMelia.shtml