“How you invest during retirement is as critical as how you invest in preparing for retirement. Things are never as simple and automatic as they once may have been — you worked hard, saved, and then sat back and collected your benefits.You can’t rely on someone else coming up with the cash you’ll need once you stop working.” -Daniel R. Solin
I am not sure how many of us will be able to retire on our current savings and pension schemes. I know I won’t be able to. Therefore, I believe that we need to take stock of our retirement financial situation to make a plan to increase our potential income for when we finally announce our departure from our day jobs.
Retirement and financial market trading
Before we look at ways to generate extra funding for our retirement, let’s have a look at what the dictionary definition of retirement is. Yes, I know that I am stating the obvious; however, I believe it is a good idea to have an absolute understanding of what we are talking about. It mitigates the risk of confusion.
According to Susan M. Heathfield, “retirement is the point in time when an employee chooses to leave his or her employment permanently. Retirement generally coincides with the employee’s eligibility to collect retirement resources such as Social Security, a company pension, or… another retirement plan.”
In other words, as an active member of the global working world, you have one of two choices: either you go to work every day for the rest of your life, or you decide to stop working once you have reached a certain age.
Financial market trading
In a nutshell, financial market trading is the practice of trading “financial securities, commodities, and other fungible items of value at low transaction costs and at prices that reflect supply and demand.”The good news is that modern technology has allowed the smaller investor the opportunity of investing or trading on the global financial markets via the online share trading vehicle.
Generating additional income for your retirement
What do saving for your retirement and trading on the global financial markets have to do with each other? Well, simply stated, you can sign up with an online share trading broker to augment your retirement savings. It must be noted that the practice of growing your personal wealth is not as simple as it sounds. Yes, this is supposed to be an article on the positives of online share trading, and it should be encouraging you to start trading online as soon as possible. However, it would be remiss of me not to alert you to the dangers of unscrupulous traders and poorly thought out trading strategies.
Online trading is an excellent and safe way of increasing your retirement funds; however, it is worth your while making sure that you are on the right track. Therefore, the most important tip to help you ensure that you trade profitably is to do your homework before signing up with an online trading partner, and before you place any trades.
Choose your trading partner with care
As many other online commentators are noting, the current ease of which people can access the Internet has both benefits and disadvantages. The biggest advantage of quick and easy Internet access is that you can trade on any of the global financial markets. However, the biggest challenge is ensuring that you partner with a reputable, honest online trading partner who will not defraud you of your investments.
Therefore, to determine whether you are signing up with a valid online trading broker, it’s vital that you research your different options. Read online trading forum posts, review websites that have been set up and are maintained by current or former online traders, and finally, have a look at the broker’s website. These information sources will give you a good idea of whether the company you choose to trade with is a reputable trading partner or not.
Research the assets before you place trades
Furthermore, it is critical that you research the underlying assets that you wish to trade on. By keeping track of the global geopolitical and socio-economic events that will impact the prices movements of the stocks you want to trade on, as well as researching the asset’s price movement history, you will garner a significant amount of data on this asset, which will, in turn, help you place a successful trade.