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COMMENTARY | While I'm typically a glass half empty type of guy, sometimes I can find the positives in certain situations. And as I watch the stock market fluctuate wildly, the economy mired in slow growth, job creation remain pitiful, Europe stumbling along with their debt woes, and an all-in-all sluggish and unstable global economic environment, I can't help thinking that I still like my retirement picture right now . maybe even more so than I did three or four years ago. Here is why.
IRA Dividend Reinvestment
After the wild market fluctuations of post-tsunami Japan, I felt it was time to move my retirement investments to high ground, so to speak. I pulled my money out of riskier funds and moved all of it into a bond/stock/cash income fund that pays a monthly dividend that is then reinvested into the fund. This means that while the fund price might sink as the market sags (although not as wildly as with my previous funds), the price I pay for the shares I buy with my reinvested monthly income drops as well. And since I can't get at this money for about another 25 years without penalty, I don't really care if the price drops. In fact, I welcome lower prices in order to better dollar-cost-average my reinvestments.
Not Banking on Social Security or a Pension
There has been a lot of concern about the future of Social Security and pension plans as of late. However, since I don't have a pension, I don't have to worry about reduced or non-existent payments. And since I'm not counting on Social Security as a major source of income during my retirement (though it would be nice, and I'd still like to see the program reformed to get it back on track and healthy again), its problems are not as much of an issue to me as they might be to many others.
A Positive Career Path
While my career path is far from prefect, I can't say that I dislike it — far from it in fact. I love my career and the way in which it is progressing. From some of the articles I've read about working into old age helping to keep people healthy and active, this is a good thing. Not only this, but by liking what I do, I don't mind the thought of working later in life, which will not only decrease the amount of time I'll need to rely upon my retirement savings, but will increase the time I can save and let my money grow in preparation for those golden years.
Options, Options, Options
While I dislike seeing our economy in the state it's currently in, I have to say that sometimes good things come out of bad situations. Similar to a lower stock market presenting better buying opportunities, you could say the same thing about the real estate market. While I'm far from a fan of home ownership, I can still say that in certain situations and locations it can be a very good thing, and I am keeping my eye out for potential buying opportunities.
A struggling economy also often comes with innovative and creative new ideas for jobs and income earning opportunities, which could provide opportunities for those who have an eye toward the future. While it's hard to endure a long-lasting economic downturn, as with every other downturn the American economy has endured, we eventually come out the other side with renewed enthusiasm and positivity. And while this time seems a little bleaker than most we've endured, hopefully that turning point will come at some point before I retire in 35 years, which could provide a variety of employment, career, and income earning options for those of us with the time to wait.
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Disclaimer: The author is not a licensed financial professional. This article is for informational purposes only and does not constitute legal or financial advice. Any action taken by the reader due to the information provided in this article is solely at the reader's discretion.