An Economical Retirement Investment Plan

An Economical Retirement Investment Plan



The practice of economy, directed toward a retirement

investment plan in the stock market, is in itself a source of

great revenue. It is the art of making the most out of every

stock market investment, with the definite purpose or goal

being to provide a life that is fully independent of monetary

concerns.



But the economy of making each investment in the stock market

does come with a price. It will require self-denial (the money

invested is not spent for goods or services). Economy and

self-denial, I'm afraid go hand-in-hand. To truly benefit from

a stock market investment, a savings plan should be adopted

and a systematic approach of dollar-cost-averaging (buying the

same stock at different prices) should take place; and when

the purchase should take place, economically clearly defined.



How to use your investment dollars will require forethought,

patience and wisdom, for they are the pillars of economy.



Before making any stock market investments know exactly what

you expect from those investments. Have the patience for the

investments too fulfill the expectation, and the wisdom to know

exactly how the investments will fulfill the expectation.



A forethought example:



I want every stock market investment to supply me with

ever-increasing cash for the rest of my life. I want my

retirement investment portfolio income to grow until the

income from my portfolio replaces the income from my job when

I retire.



A patience example:



I will make quarterly investments into each security owned to

raise the cash dividend supplied by each stock market

investment. I will start by owning three companies which will

supply me with cash dividends every month of the year. I will

also add the cash dividends to the quarterly investments. I

will build this stock market retirement investment plan up

until I own 500 shares of all three companies. Once 500 shares

of each company are owned, I will begin investing in three

more companies. Owning six companies will provide

ever-increasing cash dividends twice a month, until I retire.

My patience will eventually acquire 12 companies, providing me

with income every week of the year.



A wisdom example:



I will only purchase those companies that have a historical

record of raising their dividend each year. I know that a low

2% dividend paying stock is not necessarily bad. It means the

company in question is a growth stock, using most of its

profits to expand. A growth stock makes up for the lower

dividend yield by faster stock appreciation in the marketplace

(however, the company will still show a historical record of

raising their dividend each year). I will diversify into 3

stocks, right from the get-go, even if it means I start off

with as little as 5 shares of each company. I will not pay

commission-fees. I will place emphasis on increasing the cash

income paid to me from all my stock market retirement

investments.



I will also: "Put less emphasis on increasing this week's

pay, more emphasis on increasing my earning power by the right

reading." - Donald Laird



For some right reading try the PREFACE from the book `The

Stockopoly Plan - Investing for Retirement.' Visit:

http://www.thestockopolyplan.com



Charles M. O'Melia is an individual investor with almost 40 years of experience and passion for the stock market. The author

of the book The Stockopoly Plan – Investing for Retirement; published by American-Book Publishing. You can invest in the book at

http://www.pdbookstore.com/comfiles/pages/CharlesMOMelia.shtml