I know one person who has been retired for a few years now, and he has slowly seen his life savings ebb away. The trouble is that he didn’t think about what he was doing with his money, and made a lot of rash and reckless decisions. For example instead of investing in market leading companies that offer solid dividends every year, such as the ones Warren Buffett invests in, he instead invested most of his money into high risk small cap stocks. As you can imagine, almost all of these investments turned out bad once the recession hit.
So before you rush out and open an account with TradeKing or one of the other online brokers, you might want to consider doing something more productive with your money that isn’t anywhere near as risky. For example you could invest in property or you could simply save it for your grandchildren. If you’re trading stocks and shares, then you’re taking a hell of a gamble, and it may not be worth the effort, or indeed the stress at this time in your life.
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