We are living in very scary times and everyone is worried about tomorrow as you cannot predict what is going to happen. It is for this reason that the issue of Invest and Retire has become so important. This is because everyone wants to invest in a plan whereby they are assured of more benefits and they are assured that their future is somehow secured even after they retire. As you decide on what you are going to invest in. You should be careful that you do not make any of the mistakes listed below as they will sweep you away from existence and your future will change for the worse.
- Avoid panicking over market fluctuations: Inflation has become a common scene in our economic cycle. When many people encounter any fluctuations in the market they tend to give up. You should understand that recessions and market downturns are common in a free economy. Recession is referred to as the decrease in Gross Domestic product occurring for two consecutive quarters hence it occurs regularly. Studies have shown that it is rare for recession to take place for 8 months.
- Reaction to daily reports: If you are the person who keeps checking the news and media reports provided so that you may know how the investment world is doing then you need to stop if at you are considering investing in your retirement. The best strategy in investing is looking for superior companies and let your money increase with time. Checking daily reports in the media and reacting to them is regarded as nonsense.
- Tracking buying when there is an economic turn: It is good to note that most of the people who are very successful bought their assets and invested heavily when everyone else was selling. Buying during down turns is not easy but you should take the risk as it might turn out to be the best decision you ever made. You should risk and take advantage of buying when those temping opportunities present themselves. If you follow this pattern you will be able to buy more shares when prices are low and buy less when prices are high.
- Market timing: most investors try timing the economy having in mind that they will only buy when the economy is good. This may work once in a while but not often as you might think. Make the decision of when to buy based on the fundamentals but not on the timing.