Tuesday, March 13, 2007

Risk in retirement..............

To me and probably to you, the hallmarks of a successful retirement are dignity and independence. Today the average American male lives to be 74, the average female lives to be 80. I know the key to financial independence, perhaps over decades of retirement is an income you can’t outlive—an income that’s rising even as your cost of living continues to go up.

The biggest financial risk to all of us, besides not losing one’s money, is outliving it, which means owning the stock market is more critical today than ever before. Remember, the Consumer Price Index over the last 30 years has tripled. For grins, how many people do you know who have tripled their income in their retirement years?

Risk is the extinction of their purchasing power. Safety is increasing their purchasing power.

Last week I paid 39 cents for a postage stamp. I will bet you my shoes that the price of stamps is only going one way. The government inflation numbers are rather comical. They lie. Inflation has probably averaged 4% a year during my lifetime.

Would anyone care to guess which way the price of stamps is going for the rest of their life?

In 1976 when I completed my Economics degree the price of a postage stamp was 13 cents

As you can see, consumer prices have roughly tripled since then.

The stock market has gone up thousands of points since then.

Anyone think they don’t need stocks for the long-term?

No comments:

Native American Advisors CHIPPEWA PARTNERS

My photo
CHIPPEWA PARTNERS, Native American Advisors, Inc. is a Registered Investment Advisor, founded by Dean Thomas Parisian in 1995. The firm is a manager to an exclusive clientele and is closed to new clients. As a Registered Investment Advisor, our expertise developed over 35 years balances experience, integrity and tremendous work ethic. Dean Parisian is a member at the White Earth Reservation of the Minnesota Chippewa Tribe, a former NYSE and FINRA arbitrator and trader who began his career with Kidder Peabody and later worked for Drexel Burnham Lambert in LaJolla, CA. His philanthropic interest is in Native American education and he's endowed a significant scholarship for Native Americans at the University of Minnesota. His greatest accomplishment includes raising two sons and 26 years of marriage. The Parisian family enjoys outdoor pursuits at Pamelot, their farm in Tennessee and at the Ghost Ranch, their ranch on the Yellowstone River in Montana. For media requests contact the firm via email: ChippewaPartners (at) gmail dot com, on Twitter: @DeanParisian. Global 404-202-8173