The Impact of Investment decision in Retirement-Odunze Reginald C

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Tom Macphail in 10 costly Pension Mistakes noted that “If you have a pension, have you ever reviewed it? Millions of people haven't. Moreover, recent research revealed more than two in five adults (41%) - 8 million people - cannot remember how their pensions are invested. Why is that alarming? Performance can vary quite dramatically across investments and even a seemingly small difference could have a significant impact on the size of your pot” Continuing he stated that these are just projections. Investments will not always go up in value, they also go down, so you could get back less than you invested; what is certain is that they won't perform as predicted. Also, these values are in today's terms, without considering inflation, which will reduce the spending power of your money over time “According to several researches, people invest for two basic reasons; they are follows, to make provision for old age and to be wealthy. Being wealthy is a function of the state of mind of the owner and the generosity of the individual. There is in agreement with Robert Kiyosaki in his book Rich Dad, Poor dad he noted that “people save for two basics to cater for their retirement and to save lots of money”

So many people cling to their money as if their life depends on it. While some are willing to give almost half of their possessions but that is not our subject of discussion.

Venita Van Caspel according to schuller noted  while studying investment “heard a very startling statistics of every people reaching age 65, only 2 percent were financially independent” continuing  Schuller op cited opined that Venita was raised in a Christian home without money, which she claims gave  her a health respect  for a dollar”

From the startling revelation, it all means that many are bound to fail should they kept deaf ear to investment.What the article is saying is that apart from your pension contribution, you can also embark on one or two investment instruments to protect your old age. And in embarking on investment, it is wise to consult the professionals in that field, these investment advisers, analysts are able to study trends and be able to make informed decisions to that effect.There is the urgent desire to spend flamboyantly even during the period of retirement. Ordinarily it is not supposed to be so. And according to Emily Brandon in an article captioned   “8 tips for people who will retire in 2015”-Emily Brandon”  “What you decide to do in retirement will have a big impact on your costs and quality of life.  "Certainly you will spend less on gas and don't have to spend as much on work clothes, but some people are also going to spend more money now because they have the time and don't just want to sit around the house," says Craig Schmith, a certified financial planner in Durham, North Carolina. "If you've got pent-up demand to travel, especially internationally, and you haven't had time to do that, you need to think about budgeting that in."

In The Millionaire Next Door, authors Thomas J. Stanley and William D. Danko find that millionaires were more likely to drive a Ford than a Lexus or Mercedes.
“Many affluent respondents take joy in driving vehicles that do not denote so-called high status. They are more interested in objective measures of value. Some millionaires do spend considerable dollars for top-of-the-line luxury automobiles. But they are in the minority.”

People especially old people, according to psychology have fantasy of what they desire in life, they may tend to overlook it if there is no money, but immediately money comes in they tend to express their desire in their purchases. And as Prof Pat Utomi 2008 in “The Limit of lets share Economy, he stated that like people who won lottery, they often return to poverty.

To live a better future devoid of stress and bitterness, it is always good to embark on a stringent investment that will cater for your life during old age.

Odunze Reginald is the Lead Consultant, Chareg Consulting, a management and marketing  consultant  a social media and social marketing consultant , you can visit our twitter anchor @regydunze, find us on Facebook @ Reginald odunze and reginaldodunze.com, at google+ @ Reginald Odunze and at Linkedin@reginald odunze.