How to Create a Healthy Retirement Nest Egg – Introduction
Retirement is probably the best decisions you can ever make. Sadly, most people, especially the young ones ignore its importance and live to regret in their golden years.
Regardless of your age, now is the best time to start thinking about your future, after you retire from your job or from trading.
An important benefit about being a trader is that if you do it full time for many years, you will likely be very successful in future. Even during retirement, you will be spending a few hours every day trading and making good money.
However, trading is risky and during your retirement, you don’t want to lose all your money. As such, starting to make small money moves can help prepare you become a better person in retirement.
- First, start saving early. As a trader, you possibly make good income. Therefore, you should do the best you can to start early in your trading career. The moment you start making money as a trader, I recommend that you set a certain percentage of your profits and save them in a retirement account. This can be a fixed deposit account or an account by a money manager.
- Second, always have a separate trading account and an investment account. In this, you should create a day trading account and another account which you will use to invest in the long term. In the latter account, you should buy bonds and stocks. In the latter, I recommend high-yielding stocks of good companies.
- Third, always be disciplined about money. In this, I recommend that you don’t spend a lot of your profits on vanity or luxurious things. For example, you likely love fast cars like Mercedes and Porsche. There is nothing wrong in buying these cars. However, you should do your best to buy things that you need. If it’s a car, I recommend that you buy a good car that is not expensive to maintain.
- Fourth, always speak to people who have been there, done that. No matter how good you are as a trader, never forget or ignore the power of learning. Getting insights from experienced professionals will help make you a better trader and a better person. Therefore, take time to read books from experienced people. Also, organize meetings with other people who have been in the industry for years.
- Fifth, be disciplined about money. It is very important for you to be disciplined when it comes to your financial wellbeing. In this, I recommend that you take care of the finances that you have. Whenever you get some money, always spend it nicely. Also, avoid the trap of taking the money you have saved for retirement.
- Sith, I recommend that you diversify your sources of income. In this, I recommend that apart from trading, you do other things to supplement your income. These things could be opening a shop or starting a business that won’t take a lot of your time.
Finally, I recommend that you do your best to avoid debt. In my experience, I have seen debt finish people. To achieve this, I recommend that you only take debt when you really need it and create a strategy to pay it on time.