long term stock investmentsFor most American households when you ask them what they invest their money in the reply is usually the same or very similar.  Most people have safe long term investments that will have steady growth around 7%-12% over the long term.  These types of investments are meant for people that plan on working for someone for the next 20-40 years and by the time they retire they will have a steady heap of money and if they are lucky they can keep their current lifestyle and have a ton of free time in their lives.


These investments usually include 401k’s, IRA’s, and Mutual Funds. These are usually the long term investments of the middle class.  What many of these people end up with is a million or so in their retirement plan and they are set.  Congrats, you retired a millionaire.  You deserve a pat on the back…..or a kick in the forehead.

What people overlook and let themselves be sold by the typical financial advisor is that in 30 years that million in the bank will be worth $300,000 of today’s money.  I don’t know about you but retiring on $300,000 sounds pretty miserable.  This is why people have to downsize when they retire.  401k’s, Basic IRA’s and Mutual Funds are investments for dummies….or the ignorant.


When you understand the basics of the economy you will see that when one asset class goes up the other goes down.  This means that there are great times to be in stocks and also horrible times to be in stocks…like 2008.  Those that were in commodities in 2008 made a nice little profit and when the time comes again they will move their money again.  Long term investments are meant to be moved.  If they stay in the same place you will ultimately loose and be in an investment for dummies.

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