Investing in the stock market during retirement
Investing in the stock market during retirement is exciting and rewarding. But it is not for everyone. Here are the five things that you should consider when investing in the stock market during retirement:
- Lifestyle Costs: Have you got enough pension income to cover your lifestyle? You should have excess free cash flow available before you consider investing in the stock market.
- Risk Appetite: What is your appetite for risk? Risk and reward go hand in hand. The stock market has been the best performing asset class over the past 100 years delivering average annual returns of 11.8%. But you need to understand that in the short term stocks can be volatile.
- Knowledge: What knowledge do you have about investing in stocks? If your knowledge level is low you need to get training from a professional stock market training company. Click Here to get access to my FREE eBook
- Liquidity: Most of my retired clients don’t like the idea of tying up their capital for too long. So I’m guessing you are the same. In the stock market you can turn investments into cash in a matter of seconds.
- Costs & Fees: Investing in the stock market through traditional stock brokers can be very costly. A more cost effective way to invest in the stock market is through an online broker.
There you have it, if you are retired or about to retire, learning how to invest in the stock market will offer you a new lease of life but it is not for everyone. Your current lifestyle costs and appetite for risk will determine this.
If you are not sure, take a free trial on our simulated investment platform and training service. This will allow you to practice and learn in a risk free environment.