Investing in the Stock Market for Early Retirement Is for Dummies

This item was recently posted on an article called How to Retire Early in 5 Easy Steps:

4. INVEST: The next step is to invest it; the return is worth it. You can double your money in as little as 20 years with a mere 5% return. Considering that the average return of a stock portfolio is around 9% over a ten-year period, it is reasonable to assume that you could net more than double your money in ten years, allowing you to retire that much sooner. As such, not investing your savings, even if it is just invested in a high-yield savings account, is tantamount to throwing away money.

This was the comment that I placed after the article:

I believe your comment "Considering that the average return of a stock portfolio is around 9% over a ten-year period," is misleading and simply not true. Investing in the stock market will not help people retire early. It will leave them begging for a retirement job.

I have seen figures like this used a lot by financial advisors, who have nothing but their own self-interests in mind.

This comes from a recent article called You Wasted the Last 10 Years of Your Life:

"If you think the stock market is the road to a comfortable early retirement, you're wrong. You may have thought about cashing in on the long-term average annual returns of 7% (postinflation) you heard you could get from investing in stocks, but I'm here to tell you to think again.

In the past decade, the SPDR S&P 500 ETF (NYSE: SPY), an exchange-traded fund (ETF) designed to track the broad U.S. stock market, returned an amazing -1.4% per year. That's right, negative, as in less than zero. Including dividends. That's a long way from 7%."

So, based on these figures, one would have been better off to place money in a savings account or even in one's mattress than investing in the stock market."

I am all for early retirement and believe that one can retire comfortably by the age of 60 but relying on the stock market - as on Social Security - is for dummies.

Ernie J. Zelinski
Author of How to Retire Happy, Wild, and Free
(Over 125,000 copies sold and published in 9 languages)
http://www.retirement-quotes.com
and The Joy of Not Working
(Over 250,000 copies sold and published in 17 languages)

In response to another article called Debt Is the Number One Killer of Early Retirement Dreams, I posted this comment:

You state, "Debt is the number one killer of early retirement dreams."

I disagree with you.

You should have said, "Death is the number one killer of early retirement dreams."

Many people end up dying on the job before they are able to take early or late retirement.

On the other hand, I agree with you that debt is detrimental to retirement. If you are retiring with any debt, you aren't ready for retirement.

Note: The article mentioned on the top is available at How to Retire Early

Get out of the Rat Race Now!

I arrived in London England on Thursday morning to do some business regarding my books.

Flying Executive Class is even cooler than I thought.

Air Canada has an arrivals lounge for Executive Class passengers at Heathrow 3 where one can take a shower after a long 8.5 hour flight. Refreshing.

Perhaps an Executive Class return full-price ticket is worth $11,900 if you can afford it.

I checked my e-maill messages and there was a message with the heading "URGENT - WALL STREET JOURNAL SEEKING ERNIE ZELINSKI" sent 10 times to two of my accounts.

It was Brett Arends who writes a personal finance column for the Journal.

I e-mailed him back from the Arrivals Lounge and told him to phone me in an hour or two at my friend's place in London which he did.

As a result of a half hour telephone interview, I was quoted in an article in Fridays's Wall Street Journal at:

Get out of the Rat Race Now!

For the record, I am not as frugal as the article indicates. I did fly Executive Class to London England on my Aeroplan miles. If I had to book the trip without the miles on only 2 days notice, it would have cost $11,900.

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Retirement Income Resources

Retirement Income - 10 Sources to Help You Retire Early

Most Americans at work have only one source of steady income: their job.

In retirement you are likely to have several sources of retirement income, according to a Gallup poll released today.

Following are sources of retirement income that Americans either rely on or expect to rely on:

• Retirement accounts. A 401(k), IRA, Keogh, or other retirement accounts


• Social Security


• Stocks.


• Savings.


• Pensions.


• Rent and royalties.


• Inheritance


• Annuities or insurance.


• Part-time work or a Fun Retirement Job


• House Equity.

Incidentally, this is the first time this decade that the majority of Americans have doubted their ability to retire.

Gallup’s telephone survey also found that 52 percent of Americans doubt they will have enough money to live comfortably in retirement, while only 41 percent say they will.

Aggravations of Work

Aggravations of Work

Here are some quotes about work and the problems that accompany it:

If you have a job without aggravations, you don't have a job.
— Malcolm Forbes

You are no bigger than the things that annoy you.
— Jerry Bundsen

It's only work if somebody makes you do it.
— Calvin in Calvin and Hobbes cartoon by Bill Watterson

Employees who think they know everything are very irritating to those of us who do.
— Unknown wise person

Boy, the things I do for England.
— Prince Charles (on sampling snake meat)

Depressed about not being able to retire as early as you would like? Then check out:

Office Humor

21 Retirement Websites and Blogs That May Help You Retire Early

Another E-Mail about The Joy of Not Working

I received this e-mail from Zain Fazal:

Dear Mr. Zelinski,

I had just completed reading your book The Joy of Not Working and I must say, I am very relieved to know they're people out there who think like you do. The work ethic is modern day North America has always bothered me. I have seen what workaholics has done to family, friends I came to the conclusion a long time ago that this can't be as good as it gets there has to be more to life then work.

Every job I had has made me miserable (factory worker, donut fryer, warehouse worker, etc.) once I found out I didn't like a job. I quit right away. Because of this I face ridicule from my family and friends who believe they are some sort of martyrs by working 10-12 hours a day or working on weekends it drives me crazy when people think like this.

After reading The Joy of Not Working I am happy that I'm not the only one who thinks way! Your book is insightful, clever and witty, I. am going to be graduating from college with a diploma in Tourism and travel from Mohawk College. However in between looking for a job, I plan to do a bit of creative loafing of my own. I plan to learn to drive; learn to swim, among other things. Thank you for letting me know it's OK to not work hard and it's OK not to conform.

(I especially love the chapter regarding GNP) I only wish you had included the reply to the one negative letter that was sent to you about The Joy of Not Working .

Best regards,

Zain Fazal
Kitchener, Ontario

Purchase The Joy of Not Working on Amazon.com with this direct link:

The Joy of Not Working on Amazon.com

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