Friday, December 15

Trading Odds And Ends: The Way In Which Lunch Money Can Help Your Retirement Plans

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It is amazing to me the number of people that complain that they wont have plenty of wealth to retire with, but, still spend money each week in the hope this week could be their week to win big by winning the lottery. When chances of winning the State lottery is about one in 80 million, the chances are not in your favor.

Lets put it this way, should you pay out $10 weekly playing your favorite lotto, and can receive 6.5% per year, over 25 years, you’d have slightly below $31 thousand.

For those who also purchase lunch each day, consider setting that money aside also. At an average of $10 per day + $10 for the lotto, should you put that money away, you can have $185 360 at the end of twenty five years.

Think about it – you could add on $185 000 for your retirement in twenty five years just by bagging a lunch on a daily basis, and not taking part in the lotto. Amazing how much $60 every week will get you.

Finally, imagine if you can receive 9% buying high quality stocks? (since 1900 – this year, the average return on investment has been 9.4%)

Would you believe bringing a lunch to your workplace and not taking part in the lottery can help to make you $286 771 richer in twenty-five years if the equity market returns an average of 9% every year? A quarter of a million dollars.

So think of that the next time you place your lunch order!

Now how would you generate 9% or greater? You could consider penny stocks given that with any luck ,, this new found fortune represents a smaller percentage of your entire net worth. Since that money was going to be frettered away purchasing meals and lottery tickets — you can afford to be a bit more aggressive with your money – however, thats not to suggest you need to gamble it – just that you really can afford to take on a little bit more risk. A prudent technique would be to take 5% of your new found riches and invest in small cap stocks.

The kinds of small caps to trade are certainly not the types which have low volume and very little when it comes to revenue. Uncover stocks that trade not less than 250 000 shares everyday, possess a rate of growth with a minimum of 20% and should be profitable. It may take a bit of time to discover them, but these jewels put the odds of success in your favor – you may also choose to find stocks that are buying and selling at their 52 week high — as these stocks commonly keep on moving higher.

Learn more about penny stocks by visiting From bonds, mutual funds to trading tips – we can help


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