Retirement Investing Made Easy

It may seem ambitious as investing has been anything but easy these days. The reality if you focus on the big picture you will come to realize that it does not have to be all that difficult. Remember that retirement is a long term goal and these crazy fluctuations that are happening now should be looked at as possible buying opportunities.

But that may be easier said than done. And it very much depends on your age. If you are fifty years old you are going to have a different perspective on retirement investing than someone who is twenty. But even at fifth there are still some years ahead before you decide to retire. People are working into their seventies these days so that still leaves twenty years to sock away some cash.

When a person retires they essentially stop earning money actively. Because of this, many of the financial advisors and gurus will tell us to map out how much money we believe we need when we get to that point. This is the basis of most adviser's plans for retirement investing. But who the heck can know how much money we'll need? With all this economic stimulus and TARP being thrown about, inflation is likely to return it's ugly head by that time. So any forecasts of future monetary requirements are likely to be woefully inadequate.

How then, do you plan for retirement? What is the methods for retirement investing? One area that is often overlooked in the world of investing is dividends. Now granted, with the economic turmoil going on now, many companies have drastically reduced or eliminated their dividends. But the media only focuses on companies that are newsworthy, ie, the ones that are in trouble. There are many companies that continue to increase their dividends. Those are the ones that are not only solvent but are also profitable. It just takes some time to find these companies but the effort is worthwhile because of the output.

It's important when considering dividends to try and keep investments in companies that pay a dividend in tax deferred accounts. Although disputed taxes were reduced during the Bush administration there is no guarantee that will continue under the Obama administration. In fact, Obama is likely to raise the taxes on dividends to a level that is greater than when Bush even came into office. So prudent tax strategies are a must. Otherwise, much of the gains in dividends will go to the government.

Retirement investing made easy sound a bit of a stretch but by considering dividends in a portfolio you have the benefit of earning money up to and during retirement. By keeping those earnings in a tax deferred account, you have the further benefit of not giving away too much to Uncle Sam. There are people that have debts paying accounts that actually exceed the amount of money they received while working. The magic of compounding works and dividends give that compounding an ever increasing boost. It's like putting your portfolio on overdrive. It does take some effort to find the right companies and you need to monitor the results to make sure those companies stay on track. But the rewards of having dividends when you are retirement investing are definitely worth the consideration.

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