If you're like a lot of people watching the recession unfold, you have likely started to look at your finances under a microscope. Perhaps you have started saving--the annual savings rate by people has started to recover a bit.
Statistics conclude that 72% of workers will only be able to replace 45% of their income from Social Security and their 401(k) s combined.
Yikes! The huge majority of those depending on 401(k) s have little hope of living as well in retirement as they did being employed. If those scary stats aren’t a wake-up call to baby boomers and generation-Xers I don’t know what are.
A lot of middle-aged employees have a number of choices. Work at your present job till you drop dead or look forward to a second career as a Wal-Mart welcome. A different choice is to actually learn how to become a better investor and work hard to make your retirement hoard grow at a rate higher than the 7% to 10% yearly that you may expect from an index fund or with a financial advisor.
Now you're inquiring: What about investing my cash? How do I begin if I don't have a lot, and how do I limit my risk? Here are steps to becoming an investor, and do it the right way.