I have always believed in saving for my retirement. I put the maximum amount away every year from my paychecks, to take advantage of the employer match. I felt I was doing a good job with my saving. I didn’t feel like I had to pay too much attention to what I invested in, the money would just grow like I had always been told.
At the time of the 2008 financial crisis, my 401k had been rolled into an IRA that I kept invested in mutual funds. That account was cut in half. I was really upset, but I just ignored my retirement account, it was too painful to look at the huge loss.
At the end of 2011, when it had finally almost come back to pre-crash level, something told me I had better take charge of my savings and think about my future because nobody else was going to.
I had kept my account invested in mutual funds, thinking that was diversified enough. The problem with mutual funds are the high fees which pretty much wipe out any gains you might make. So my account was growing at a pace that was less than inflation, in essence, I was losing money every year.
I found an investment advisory service through an ad on TV. It was a video link explaining the US Federal Reserve. I never understood the FED or what it did, but in a nutshell, I discovered that the money printing by the FED was causing not only the devaluation of my retirement account, but also the many booms and busts of the stock market.
This issue is complex and too much to go into in this post, but suffice it to say it drove me to make the decision to move my entire account to a self-directed IRA. A self-directed IRA is a retirement account where the user controls the investments. You decide which stocks, bonds, ETFs or mutual funds you want to invest in.
I converted all the mutual funds I held to cash. Then, with the help of my investment advisory service, I learned how to value stocks and pick solid companies to invest in. I also became familiar with DRIP plans, where any stock dividends paid are re-invested back into the company’s stock, so I end up owning more shares and earning an even higher rate of return.
So far I’ve achieved over a 10% return over the last few years. There’s nothing better than taking control of your financial future. I know that I care more about my money than someone else.
Is it a lot more work? Not really. I look at my account every week and rebalance as necessary. I’ve learned additional techniques to juice my returns and protect myself against losses.
I would highly recommend Stansberryresearch.com. They have many different product offerings to suit any budget. I’m currently a lifetime subscriber to their buy and hold services, but by far my favorite is the 12% Letter. I encourage you to check out their website and choose a service that’s right for you. I’ve earned my money back many times over.
If you are interested in subscribing, it’s best to call their toll free number. They are usually running promotions and if you talk to an operator you’ll get the best deal. You should be able to subscribe to the 12% Letter for an introductory rate of $39.
Dan Ferris is the analyst for the 12% Letter. He has been quoted in newspapers and has even been on TV a few times. Here are some links if you’d like to check it out.
http://video.foxbusiness.com/v/2991950656001/will-stocks-continue-to-rally-into-2014/
http://stansberryresearch.com/news/should-apple-partner-with-tesla/
The only downside to Stansberryresearch.com is the relentless promotional emails. However, they are usually very informative, so even if you aren’t interested in the product offering, you’ll learn something from watching them.
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