Mikael Rieck is the author of more than hundred articles on topics of how to make money both online and offline. He has been online since 1999 and has always had a passion for money making opportunities and teaching others how to make a profit.
Don’t Try to Save Your Way Into Retirement
I don’t know whether it is human nature or whether it is because we’re conditioned by the media, the school system and the environments we’re living in but I find that there is a huge majority of people that believe that they are able to SAVE their way into a decent retirement. Having money in the bank is probably one of the least profitable ways to “invest” your money.
The reason I put “invest” in quotes is that I actually believe that having money in the bank will end up being an expense for you while making the bank richer. The reason is that first of all you’re paid an insanely low yearly interest on your savings. Secondly your savings are being eaten up by the inflation and if that is not all you’re still taxed on the little amount in interests that you do make. On top of that you’re also paying a lot of different fee that you might not even know of. Having money in the bank will provide you with some level of security (if they don’t go bankrupt) but it is definitely not a good investment (if you would want to call it an investment).
So you might tell me that you’re not putting your money away into a savings account but instead you’re putting it into some kind of investment vehicle or mutual fund. At the current times how do you think that idea is going? Not that good right? And apart from that you’ll still have to deal with the inflation as well as the many fees that you probably do not know about. Fund managers are exceptionally well trained in hiding their fees and commissions from the public.
And if that wasn’t enough I would just like to repeat what I said yesterday about caring for your money. Nobody but you will care as much for your money as you will. No bank account manager or fund manager really truly cares about your money like you do. They care about their business and their own money the most. And please realize that I am not making them wrong as that is just how it is. What I’m saying is that you have to be aware of that fact and make up your mind about whether you would want to base your retirement on guessing that everything will work out just fine and that the people that don’t really care that much about your money will do a good enough job. You won’t know until it is too late to do anything about it.
To Your Success,
Mikael
6 Responses so far
Brent
May 19th, 2009
2:15 pm
If you don’t mind, I want to refer to articles again. The website
is my daughter’s and I want to help them get more traffic.Either
for-donations for a great cause or maybe to sell items for same.
I saw you on other posts and I wanted to submit some articles
like you suggested but the other post didn’t place a lot of value
on them. I’ll sure I’ll need links back from sites that relate to
adoption. Your thoughts..
Mikael
May 19th, 2009
3:16 pm
Brent, I’ll be happy to help you out but I don’t quite get what it is that you’re asking for? If you can explain it a little more I’ll try to help you out.
Mikael
Brent
May 19th, 2009
4:33 pm
Thanks Mikael,
Basically want to get her more traffic thru relevant inbound links,
maybe other authority sites, articles, and other sources you might
suggest. If I could name a goal it might be to show creditability to
the site and them so that anyone interested in this cause might
donate to the agency on their behalf since this is a very expensive
under tanking.. I have seen others do this is the past on different subjects with success.
Thanks
Mikael
May 19th, 2009
5:16 pm
My first suggest would be to go talk to the owners of the sites that have previously been successful. Most webmasters are very friendly and they will probably want to help you out. If I were you I would start there.
Andrew
May 22nd, 2009
12:54 pm
Mikael,
With respect, I must disagree to some extent with your comments about putting money away in a retirement fund.
I don’t know what the situation is in other states, but in my home country of Australia, any earnings which accumulate in your superannuation (retirement) account are taxed at a much lower rate (I think around ten per cent) than what they would be if you invested them yourself (which depends on your income, but I think the top rate is now about forty percent – don’t quote me on that though), so at least in Australia, a superannuation account is by far a more efficient way to build up a retirement nest egg from a tax perspective than investing money yourself.
Plus, by investing with a fund is a much simpler process and can provide important benefits from the point of view of diversification as well.
Not to discredit your (legitimate) points, but managed funds do have their advantages.
Mikael
May 22nd, 2009
1:18 pm
Hi Andrew, please disagree. I welcome a discussion. First of all I can only agree with you that there are different tax laws in different countries and nobody can cover all of them. So if you are taxed at a low rate in Australia then that is just great.
I will also agree with you that investing in a fund is a WHOLE LOT simpler than trying to do something yourself. I’m not going to argue with you on that.
I am not going to argue that you MIGHT have (you have to check to be sure because you can’t just count on it) a diversified portfolio. But most likely you don’t.
Sure you can argue that some are in financial stocks and some are in other types of stocks but it is still ALL stocks which makes you very vulnerable when markets behave like they have done for the last 1 – 1.5 years.
What I am trying to say is that if you feel that investing in a mutual fund is the right thing for you to do then please go ahead. All I am saying is that you’ll make a lot less money than you could and you’ll be more vulnerable than if you learned how to invest like the rich instead of passively relying on someone (that are not rich) managing your money for you.
The important part is that you are happy with the solution you choose.
Personally I will rather want to learn how the rich manages money instead of doing what all the “regular” people are doing.
But if you can find someone that did indeed become rich by investing in a mutual fund please let me know because then I am definitely wrong (and I don’t mean the people running the fund *LOL*).
Thanks,
Mikael
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