The following guest post was written by Derek Sall from LifeAndMyFinances.com.
Have you thought about investing for your retirement? I sure hope so. In our world today, there are so many people that are underfunding their retirement because they choose instant gratification instead. While these individuals might look like they’re having the time of their life today, they might be cooped up in a dank, dark, state funded retirement home when they are older instead of residing in their home on the lake like you, the wise investor.
I have a friend that is incredibly cocky when it comes to financial investments. He always talks about the great picks he has made over the years, but for some strange reason I have never heard about him ever losing on a trade, and I am certain that it has happened many times. It is people like this that ultimately lose in the market. Their constant need to trade only racks up their transaction costs, which makes turning a profit nearly impossible. Many times it is best to obtain managed funds rather than trying to trade on your own. Here are just a few of those reasons:
We live in a world that is constantly on the go. If we take a moment to catch our breath, all of those opportunities might pass us by. In order to truly capitalize on the improving market to increase our investment funds, we must trust someone else to do it for us. Rather than spend every waking day tracking the market, we can simply hand over that responsibility to someone else, allowing us to do what we need from day to day. We certainly should check in on our assets once every quarter or so, but that’s way better than spending an hour hunkered over our computer each day.
We Know Less About the Market
The market isn’t at all what it used to be. A hundred years ago, investing was fairly simple. If a company was poised to turn a profit in the quarter and increase their total assets at the same time, the value of the stock would go up. Today, investing is more about politics and expectations. If XYZ company was expected to show an EPS of $0.58 and they only reported $0.50 for the quarter, their stock will tank, even though they actually made money. Beyond this, when there are issues in D.C., the stock market always seems to tumble. As a part-time investor, there is no way for you to keep track of all of this.
They Are Professionals
Managed funds are often a much better option because there are dozens of men and women that are making trades based on real-time knowledge and experience – far more than you could have by investing part-time. With their wisdom, your funds will be well protected.