Best of the Week
Most Popular
1. Trumponomics Stock Market 2018 - The Manchurian President (1/2) - Nadeem_Walayat
2.Yield Curve Inversion a Remarkably Accurate Warning Indicator For Economic & Market Peril - Dan_Amerman
3.China is Now Officially at War With the US and Japan - Graham_Summers
4.Markets Pay Attention Moment - China’s Bubble Economy Ripe for Bursting - 16th Jul 18 - Plunger
5.Stock Market Longer-Term Charts Show Incredible Potential - Chris_Vermeulen
6.U.S. Stock Market Cycles Update - Jim_Curry
7.Another Stock Market Drop Next Week? - Brad_Gudgeon
8.The Death of the US Real Estate Dream - Harry_Dent
9.Gold Market Signal vs. Noise - Jordan_Roy_Byrne
10.The Fonzie–Ponzi Theory of Government Debt: An Update - F_F_Wiley
Last 7 days
Turkey Debt Crisis is Not Contained - 20th Aug 18
Surviving a Trade War in the Age of Trump and Brexit - 20th Aug 18
Stocks Get Closer to January's Record High, What's Next? - 20th Aug 18
London Eye Best Times to Visit for Shortest Queues - Tourist Tips - 20th Aug 18
What the Copper and Gold Crash Means for Commodities and Stocks - 20th Aug 18
Stock Market Challenging Recent High - 19th Aug 18
Venezuela's Great Bolivar Scam, Nothing but a Face Lift - 19th Aug 18
Heavy Truck Sales Sending a Bullish Sign for Stock Market - 19th Aug 18
Why Oil Prices Fell -- Stockpiles or Price Pattern? - 18th Aug 18
Why The Uranium Price Must Go Up - 18th Aug 18
Land Rover Discovery Sport 90% Motorway Driving MPG Fuel Economy in ECO Mode - 18th Aug 18
GDX Gold Mining Stocks Q2’18 Fundamentals - 18th Aug 18
SPX Losing Gains - 17th Aug 18
What Gold Is Not - 17th Aug 18
Dollargeddon - Gold Price to Soar Above $6,000 - 16th Aug 18
Stock Market Higher Again, Correction Over? - 16th Aug 18
Up Your Forex Trading Game - 16th Aug 18
Large Caps Underperformance vs. Small Caps is Bullish for Stocks - 16th Aug 18
“The Big Grab” - Failing Pension and Retirement System - 16th Aug 18
How US Indo-Pacific Vision Forgot Asian Development - 16th Aug 18
Impulse Moves in the Currencies - 15th Aug 19
Best Merlin UK Theme Park Summer Holiday 2018 - Thorpe, Alton Towers, LegoLand or Chessington? - 15th Aug 18
The Essence of Writing an Essay that Must be Understood - 15th Aug 19
Is Solar Energy Rising From The Ashes Again? - 15th Aug 18
A Bullish Bond Argument That Hides in Plain Sight - 15th Aug 18
Jim Rogers on Gold, Silver, Bitcoin and Blockchain’s “Spectacular Future” - 15th Aug 19
A Depressed Economy And A Silver Boom - 15th Aug 19
Moving Averages Help You Define Market Trend – Here’s How - 14th Aug 18
It's Time for A New Economic Strategy in Turkey - 14th Aug 18
Gold Price to Plunge Below $1000 - Key Factors for Gold & Silver Investors - 14th Aug 18
Dow Stock Market Trend Forecast 2018 - Video - 13th Aug 18
Stock Market Downtrend to Continue? - 13th Aug 18
More Signs That the Stock Market Will Rally Until 2019 - 13th Aug 18
New Stock Market Correction Underway - 13th Aug 18
Talk Cold Turkey Economic Crisis - 13th Aug 18

Market Oracle FREE Newsletter

Trading Any Market

A Successful Pension Investment Strategy

InvestorEducation / Pensions & Retirement Apr 29, 2008 - 01:17 AM GMT

By: Christopher_Quigley

InvestorEducation Propositions
Given that hyper inflation is here to stay any long term investment strategy must achieve good growth in order to protect future buying power.


Most people do not have the ability to devote a great deal of time and energy to the management of their financial affairs thus any system must be simple to use.

One of the best ways for a company to prove its "value" is to declare a solid and dependable dividend return.

Pension Strategy Elements
Growth With Security

In order to achieve optimal growth but without sacrificing financial security the universe of potential investment equities must be restricted to the following:

A. Large Cap. Companies

B. Enterprises that have a long track record of declaring solid and growing dividends

C. Companies in growing markets that have a proven successful management culture

D. Corporations that have an international presence thus providing access to fast growing emerging markets coupled with foreign exchange diversity

E. Companies that have excellent return on capital and at least an A+ financial rating

Diversification

For added security, given the investment is for pension purposes, the number of stocks in the investment portfolio should not be less than 10 and should be drawn from a wide range of markets and industries.

Dollar Cost Averaging

In order to protect the portfolio from wide swings in the market, and to allow for simplicity of management, ideally regular fixed amounts should be saved into the fund of stocks chosen.

Too much attention should not be focused on market timing under this strategy as research has shown that financially strong companies that pay good dividends do not suffer the worst in bear markets and are indeed very often the first to recover in bull swings.

Example: Potential Portfolio Mix

Based on the above, as an example for educational purposes, a good pension portfolio mix would look something like the following:

Dow Chemical (DOW)

Colgate (CL)

British-Petroleum (BP)

General Electric (GE)

Anheuser-Busch (BUD)

Johnson & Johnson (JNJ)

Coca-Cola (KO)

Proctor & Gamble (PG)

Wal-Mart (WMT)

Heinz (HNZ)

By Christopher M. Quigley
B.Sc., M.M.I.I. Grad., M.A.
http://www.wealthbuilder.ie

Mr. Quigley is 46 years of age and holds a Batchelor Degree in Management from Trinity College/College of Commerce, Dublin and is a graduate of the Marketing Institute of Ireland. He commenced investing in the Stock Market in San Francisco, California where he lived for 6 years. Now based in Dublin, Mr. Quigley actively trades utilising the principles set out in the modules above. This Wealthbuilder course has been developed over the last 9 years as a result of research, study, experience and successful application.

Christopher M. Quigley Archive

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules