Tom Lydon

How To Maximize Your Nest Egg Using ETFs

By Tom Lydon on June 22, 2009 | More Posts By Tom Lydon | Author's Website

As many baby boomers approach retirement age, the $64,000 question is how much money they will need to retire and how they can optimize their nest eggs, through the use of stocks, exchange traded funds (ETFs) and other investment tools to generate enough yearly income to sustain a certain lifestyle.

Emily Brandon of U.S. News & World Report states the following things need to be considered when determining if you are saving enough for retirement:

  • The amount you plan on spending during retirement
  • The type of lifestyle you plan on living in your leisure days
  • Inflation
  • What other sources of income you may receive
  • Your risk tolerance now and what it will be in retirement
  • What you assume your rate of return on your assets will be.

The aforementioned factors will vary from individual to individual, as will the amount on which one will need to retire.  In regard to assessing risk tolerance, it is all about one’s risk appetite.  In regards to preserving one’s nest egg, the following should be considered:

  • Don’t allow emotion to drive your investment decisions
  • Stay diversified and use cost-effective investment tools such as ETFs
  • Always have a strategy; we watch the trend lines and follow the 200-day moving average
  • Have a stop loss in place in order to protect yourself

One thing to keep in mind is that you are the ultimate controller of your portfolio’s destiny and you drive its fate.

If you like this article please...
Subscribe by RSS Subscribe by Email Email This Post To A Friend Email This Post To A Friend

Leave A Comment :

Name (required)
E-mail (required - never shown publicly)
URI
Subscribe to comments via email
Your Comment (smaller size | larger size)
You may use <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong> in your comment.



HEADLINES
UPCOMING EVENTS
In 22 mins: USD API U.S. Crude Oil Inventories (FEB 5)
In 22 mins: USD API U.S. Gasoline Inventories (FEB 5)
In 37 mins: NZD NZ Card Spending (MoM) (JAN)
In 52 mins: USD ABC Consumer Confidence (FEB 7)
In 2 hrs: AUD Westpac Consumer Confidence (FEB)
Enter Your Email Address
Theme By: WordPress Theme Shop