The idea of income investing causes many young people to turn up their noses. This is sad, because young people can benefit from investing for income even more than older people.
To all my younger readers -- before you turn away -- I want you to know that if I'd known about the power of income investments when I was your age, I'd now be living like a king in a tropical paradise.
If You Think Most Old Folks are Out of Touch, Why Do You Want to Work Your Life Away as We Have?
If you want to spend the rest of your life slaving away in a cubicle, that's your choice. Nobody tried to tell me these things when I was your age, so I have an excuse for not (yet) living in that tropical paradise.
Unfortunately, I know most young people don't want to listen to "old folks." *Sigh* I was the same way when I was younger.
First of all, I have to admit that if you're now saving as much as the law allows you to put away in retirement accounts (IRAs, Roth IRAs, 401(k) plans, the Federal Thrift Fund, and so on), you're far ahead than most people your age and older.
I know it's not easy. Jobs are tight, and well-paying ones even tighter. If you're newly married you feel compelled to have a home of your own with all the furniture. If you have children you have a lot of expenses. And if you can save any money, you're thinking of their college funds before your retirement.
Many Young People Could Save More Money for Retirement
However, I also know that many young people have money, but would rather splurge. If you have money to go out to clubs, get drunk and buy the latest electronic gadgets, you have enough money to invest for your future.
I know that right now, you believe that future is a long way off. And you may be afraid it will never come for you, or the world will change. I was just as afraid of a nuclear war as you are of global warming.
However, the days, weeks, months, years and even decades do pass. You can live through them as a slave to the demands of every single day -- giving in to your bosses, your debts, and the social expectation you'll stay in the harness until you're 67 (or whatever the full retirement age is by the time you retire).
Or you can put the direction of your life under your control.
Income Investments are the Surest Way to Financial Freedom
Investing for income is not an immediate, magic solution to all your problems. You still have to first earn some income with which to invest. It does take time to receive and then reinvest the income from your investments. It's still a good idea to pay off your debts and then pay cash for everything. That demands you live within your means, which is not fun in the short run. It's also a good idea to invest in your education and your career, so you earn more money with which to invest.
When people invest the normal way, depending on a rising stock market to deliver capital gains, they are at the mercy of the market's volatility. Sometimes they are up, such as the late 1990s during the height of the tech boom. Many people then either retired early or made plans to do so. Their stock portfolios were worth so much they believed they could live for the remainder of their lives by selling off the stocks.
However, the stock market can take back what it gave. The Dow Jones is now about at the 10,000 level, which it first reached in 1999.
When You Live On Your Investing Income, You Can Work -- Or Not -- As YOU Choose
When you invest for income, you know exactly when your retirement income is high enough to substitute for your job.
That point may seem far away when you have only a few thousand dollars in your account and the dividends and interest seem pitifully small. But just keep reinvesting that income. And know that over time, stock dividend income tends to go up. Hold stock long enough, and its annual dividend may one day exceed the price you paid for it.
What's exciting is that when you have forty, fifty or sixty years to save money -- and you put the process on steroids by reinvesting your returns -- you can look forward to becoming as wealthy as you can dream of.
The future is uncertain. I can't guarantee we won't be invaded by aliens on December 21, 2012 as some people claim. However, income investing is the smartest way to reach financial independence.
Author Resource:
Young people have time to accumulate vast wealth. Click here to get the information you need to effectively make money from your investments whether the markets go up or down. If you're ready to discover how income investing can help you retire with financial security, visit this page, enter your email address into the form and click on the Submit Button. Then go to your inbox and verify that. It's free for the taking. http://www.incomeinvesthome.com/.
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