Fewer business decisions are more important in our personal finance that saving for retirement. We have all seen older people in their late 60′ and into their 70′s and 80′s who are still in the work force. Many people turn to stocks in order to save for retirement. Unfortunately, a bad broker can cost you much of your savings.
The credit default swap economic crisis era showed us that we have to take precautions with our money. There are many brokers who will make personal profit a priority and could lose much of your savings as a result. So what all some alternatives to trusting a broker to invest you savings in the stock market?
1.) Savings Accounts That Earn- Many banks are now offering savings accounts with no risk whatsoever. In fact, as long as you maintain a minimum balance, you can usually find a deal where you are paid a quarterly bonus on your savings in addition to a yearly contribution.
2.) 401(k)- Investing your money in your 401k is a safer alternative to a slick sounding broker looking for a commision. Usually 401k’s are managed by a hedge fund who will make safer plays with your money. Without commision based jobs, investment decisions are more likely to be made in your best interest. Keep an eye on your quarterly statement and make sure that your money is moving in the right direction. You should be able to see not only your contribution, and potentially a match from your company if you are lucky, and then profits on that.
Not all brokers are bad of course, but we do have to learn lessons from the economic crisis. Those we trust with our money can simply mess up and get bailed out with our tax dollars. If your retirement is squandered, you;re just getting hit from yet another angle.