Daily Gains Letter

Wealth Creation

Few people start thinking about saving for retirement when they’re just starting out in the workforce. But that might be the best place to begin. The earlier in life you start saving and investing, the better prepared you’ll be.

Retirement planning isn’t just about tucking money away for your golden years. It’s about replacing your main source of income once you retire, with another source of income.

Right now, almost 60% of middle-class retirees expect to run out of money if they maintain their pre-retirement lifestyle and don’t cut spending by at least 24%. The majority of Baby Boomers view retirement as a crisis—but only a small minority know how much money they’ll need for retirement.

A long-term approach to retirement investing produces income, wealth creation, and capital growth. As it stands, retirement savings comes from three different sources: social security; pension; and investments.

And some Americans will need to find investments with strong returns and wealth creation. A large number of Americans can look forward to spending 20 years, or more than 25% of their life, in retirement. At the same time, almost half of the population lives longer than the average life expectancy; and will need to have retirement savings that last a lot longer.

For nearly 100 years, U.S. inflation has increased approximately 3.21% a year. At that rate, prices double every 22 years. If you enter the workforce at age 20, you are likely to see prices double twice by the time you reach 65. As a result of compounding, that means an item you bought at 20 will be four times as expensive by the time you retire.

If you live longer than the average American, chances are you could see prices double again during your golden years. That’s why it’s important to remember that investing does not stop at retirement.

A lot of people do not have pensions to look forward to and, at just $1,200 a month, social security isn’t much to live on. That’s why a sound, diversified, investment strategy that encompasses stocks, bonds, mutual funds, real estate, etc., is essential for ensuring you are more than prepared for retirement.

No matter what your tolerance for risk is or your financial acumen, there is a wealth creation strategy out there to meet your needs.

How to Play America’s Widening Income Gap

America’s Widening Income GapWhen it comes to America’s income levels, we continue to be a nation of haves and have-nots—the latter being the majority. There are about 48 million Americans collecting food stamps and many more are struggling to pay rent and put food on the table. In fact, we are now also seeing once-middle-class families going to food banks. The government wants you to believe all is great, but that’s not true for everyone. Jobs are being created, but the majority are low-income service jobs that don’t require higher-level education. Yet highly educated workers are taking jobs that are far below their skill group and experie ... Read More

How the ECB’s Actions Could Boost U.S. Markets

ECB’s Actions Could Boost U.S. MarketsNot too long ago, the European Central Bank (ECB), to fight the economic slowdown in the eurozone, lowered its benchmark interest rates. The hope with this move was the same as it was in the U.S., England, Japan, or other countries that are facing economic scrutiny: lowering interest rates will eventually increase lending and eventually bring in economic growth. In addition to this, the ECB also announced that it will be taking part in an asset purchase program—something similar to what was implemente ... Read More

Profit from America’s Move Towards Oil Independence

How to Benefit from the Rise in Domestic Oil ProductionTechnology and growth stocks may not be looking that good at this time, but the same cannot be said for the oil sector, which is an investment opportunity.

We are seeing significant profits emerge in the oil patch, as the price of West Texas Intermediate (WTI) is holding above $100.00 per barrel.

The presence of the higher oil prices is driving energy companies, from the drillers to producers, both upstream and downstream, to report strong results.

Read More

How Godzilla’s Box Office Success Could Offer Your Portfolio the Same

Portfolio Popping Capital Gains It Could Be with This StockGodzilla (2014) is running wild at the box office, as this classic B-movie remake has delivered a record opening weekend for specialized movie theater operator IMAX Corporation (NYSE/IMAX). If you have ever had the IMAX experience, you likely agree that Godzilla was probably as life-like as possible through the big-screen format of an IMAX theater, surrounded by about 12,000 watts of mind-blowing sound via a network of more than 40 speakers. The screening of major Hollywood blockbusters on IMAX screens has been a big winner for the company and an excellent Read More

Why You Don’t Need Bonds for Income Right Now

Why you don't Need Bonds for IncomeThe flow of capital into the stock market continues to be directed toward lower-beta large-cap stocks and blue chips, and far less into growth and technology stocks. The comparative performance of the large-cap versus smaller-cap stocks also exhibits a movement of capital into bigger companies as the stock market adopts a more defensive structure. The risk in growth stocks is continuing to grip the overall stock market. With the move to safety, we are also seeing some capital flow into the bond market as the yield on the 10-year bond approaches the critical three-percent threshold. The higher the yield, ... Read More

My Favorite Pick in the Retail Sector Is Not What You’d Think

Variables Aligning for Retail to Outperform 2013The retail sector can return some amazing gains as we have witnessed since the recession ended—but it can also provide periods of anxiety. How the retail sector performs is dependent on many variables, including the economy, jobs, housing, consumer confidence, interest rates, and even the weather, as we witnessed this winter. There is no tried-and-tested rule on what areas of the retail sector do well. For instance, if you think discount and big-box stores always fare the best, while high-end luxury-brand stocks underperform during times of economic uncertainty, then you are ... Read More