E*TRADE Seminar #2: “How to Invest for Retirement”

“How to Invest for Retirement” is the second E*TRADE seminar for the day.

Honestly, I don’t know how much I want to write about this one. I thought it was a pretty bad presentation, at least, given the audience that I assumed would be watching these presentations.

There were two presenters, and they are clearly market experts. What they discussed was over the head of the average person (I’m using myself as the benchmark for the average person). Actually, I understood most (well, okay, some) of the material, but the seminar never really discussed “how to invest for retirement.” It really just highlighted different asset classes as investment options.

In any case, here are some highlights:

  • Compounding is a wonderful thing. It is affected by time (length of time you are investing), rate of return, and how much and how often you are investing.
  • You can use the Rule of 72 to roughly estimate when your money will double. You simply take “72” and divide by your expected rate of return. For example, if you expect a 10% rate of return, it would take roughly 7.2 years (72/10) for your investment to double.
  • You should diversify because it helps reduce risk. All of your eggs aren’t in one basket.
  • At a high level, you can invest in the following asset classes: cash or cash equivalent; bonds; stocks; mutual funds that can be a mix of cash, bonds and stocks; Exchange Traded Funds (ETFs); and options.

Waiting for Seminar #3…

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