My recent brush with mortality has me thinking about my investment goals beyond retirement. We hear so much about creating a comfortable retirement and having enough money to last until we die, but I've been thinking more about creating an investment portfolio that lasts beyond my demise. I'm talking about generational wealth. While I have no children of my own, I come from an extended family, so I've been thinking more along the lines of what I will leave to family members after I'm gone. Even more so after my recent heart attack.
While some of my family members have enjoyed a certain measure of success money wise, for the most part I come from a very poor family. Most of my immediate family would now be considered lower middle class, but that certainly has not always been the case. I grew up in a very impoverished household during the 1960's and 70's and my siblings and I have all faced a great deal of financial struggles during our adult lives. Don't get me wrong, I'm very grateful for where we are now and for any future successes we may have. However, it has all come from a lot of years of hard work and struggle and we've all paid the price both physically and mentally along the way. That being said, I don't waste a lot of time feeling sorry for myself, I simply accept what life has given me and look for ways to make things better.
I've come to the conclusion that my retirement may not be as golden as I'd like it to be, but most likely I'll be in a lot better shape than most, so I'm content with that. What I'm really more concerned about is providing a legacy for my family after I'm gone. When I retire, my plan is not to draw from my investments until they're depleted, but to draw income from dividends to supplement my retirement income, while continuing to build my investment portfolio. Ultimately the goal is to set up a family trust to provide for family members for generations to come. I want their lives to be better, less stressful, than the life I've had. So that is my ultimate goal as an investor, building generational wealth that keeps growing and providing income for my family long after I'm gone.
Showing posts with label generational wealth. Show all posts
Showing posts with label generational wealth. Show all posts
Wednesday, February 2, 2011
Sunday, August 22, 2010
VICTIM OR BENEFICIARY OF FEAR, IT'S YOUR CHOICE
While the U.S. and the rest of the world may be short on jobs, short on available credit and short on signs of economic recovery, one thing they are not short on is fear. Fear has become a pervasive part of our national consciousness in relation to the stock market and the economic recovery. Every day brings some bad news or other that activates yet another panic attack among investors.
The choice we face as investors is whether to become a victim of fear or learn to benefit from it. Fear almost inevitably causes an overreaction and it has never been more evident than in the wild swings we've seen recently in the stock market. One thing you have to do, to avoid becoming a victim of fear, is to decide whether your financial plan and your financial goals are still worth pursuing. If the answer is yes, and your time horizon is 10 or more years, then why would you be panicked by temporary swings in the market? Yes we are in a historically disastrous economic state at present, but this too shall pass. Those who had the intestinal fortitude to invest during the height of the great depression and hold on, found themselves the beneficiaries of some of the greatest wealth building portfolios the world has ever seen.
I believe we are facing just such a situation today. While the average Americans day to day life is not as bad as the people who suffered throughout the Great Depression, there are still a great deal of similarities. So, if you find yourself one of the lucky ones who still has a job and still has a little extra money to invest, now may be a golden opportunity to build the portfolio of a lifetime. When panic takes hold and most investors flee the market, look at that as an opportunity to pick up great company stocks at bargain basement prices. The resulting investments could generate untold wealth for you and your loved ones for generations to come. Instead of being victimized by fear, choose to become a beneficiary instead.
The choice we face as investors is whether to become a victim of fear or learn to benefit from it. Fear almost inevitably causes an overreaction and it has never been more evident than in the wild swings we've seen recently in the stock market. One thing you have to do, to avoid becoming a victim of fear, is to decide whether your financial plan and your financial goals are still worth pursuing. If the answer is yes, and your time horizon is 10 or more years, then why would you be panicked by temporary swings in the market? Yes we are in a historically disastrous economic state at present, but this too shall pass. Those who had the intestinal fortitude to invest during the height of the great depression and hold on, found themselves the beneficiaries of some of the greatest wealth building portfolios the world has ever seen.
I believe we are facing just such a situation today. While the average Americans day to day life is not as bad as the people who suffered throughout the Great Depression, there are still a great deal of similarities. So, if you find yourself one of the lucky ones who still has a job and still has a little extra money to invest, now may be a golden opportunity to build the portfolio of a lifetime. When panic takes hold and most investors flee the market, look at that as an opportunity to pick up great company stocks at bargain basement prices. The resulting investments could generate untold wealth for you and your loved ones for generations to come. Instead of being victimized by fear, choose to become a beneficiary instead.
Subscribe to:
Posts (Atom)
