REWahoo
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An interesting article on why having a pessimistic outlook can negatively impact your retirement finances:
Note how the author conveniently ignores the asteroid headed our way...
Investing for retirement involves placing your financial assets at risk in an environment of uncertainty. If the future frightens you, your emotions will betray you and reduce your chances of success. Without the firm foundation that optimism provides, you will react to the mood swings of other investors and the latest headlines.
The flight of money from stocks to bonds since the recent financial crisis has been well chronicled in the financial media. Fear and pessimism have caused many investors to remain on the sidelines and miss the 100% rebound in domestic stocks since March of 2009. Missing a doubling of stocks will put a big hurt on anyone's retirement planning.
Historically, "safe" options such as money-market funds, government bonds and certificates of deposit have yielded after tax returns barely above inflation. Almost everyone needs stock market returns to build a nest egg that will last through retirement. You need courage to put your assets at risk and optimism that your risk-taking will be rewarded.
Retirement investing requires optimismWe are well educated free people with access to almost unlimited low cost capital. We will continue to discover, invent, start new businesses, cure diseases and eventually solve today's difficult problems.
The choice is yours — optimism and courage or pessimism and fear.
Note how the author conveniently ignores the asteroid headed our way...