If you are like most modern folks, the mantra of saving some of your earnings has been beaten into your head since a very early age. And, you’ve probably ignored it. Either you plan on working your entire life, or hoping that some government program will provide you assistance when you’ve decided that you’re too old and to bored to work anymore. Maybe it will work out?
In reality, about the only person that you can depend on for meaningful income in your “twilight” is you. If you ain’t tucking some money away now, it will always get more difficult to do so with each passing day. Save some money… with every paycheck. Do it any way you can. With a savings account, a work-sponsored program, or whatever.
I have a variety of investments. I don’t expect all of them to kick butt every year. But I am saving for the long term, which means I tolerate more risk so that I can enjoy more return. I have lofty goals for the money I put to work. My target is an overall portfolio growth of at least 15% each year (over additional contributions). That can be done. Sometimes I have parts that, umm, suck. But I do very well overall and I always have one or two parts that really shine. Last year, my real estate funds were in the 30% range (now they are in the toilet in single digits, but I’m buying more to dollar cost average the holdings). This year, Oppenheimer Developing Markets is kicking ass and taking names. Right now it’s up over 40% inYTD return. You read correctly: 40+%. This is not the first time that ODMAX has been a race car. But I keep in mind that it can tank just as badly. I’ll need that moneyat some point!