This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Three Challenges To Your Financial Security

Stocks in this article: BMO

INDIANAPOLIS, Nov. 28, 2012 /PRNewswire/ -- For many Americans, the definition of retirement success is simple: It means having enough money to live the type of retirement they want. Today, creating financial security for the future is likely to fall largely on your own shoulders. You can still pursue the retirement of your dreams, but you'll need to plan for it and make wise choices about your money.

"The planning process can be more effective if you take into account risks that have the potential to derail your future financial security," said Brian Corbett, Vice President, Regional Manager, Indiana Region, BMO Harris Financial Advisors, Inc.  "Some possible risks everyone should consider when planning for retirement include inflation, soaring health care costs and potential need for long-term care."

Don't ignore inflation: A dollar today will be worth less at retirement because of the impact of inflation on the cost of everyday goods and services. Even a relatively modest 3 percent rise in prices means $100 worth of groceries today may cost $200 in 24 years. If your objective is for your retirement savings to at least keep pace with inflation, it will likely require broader diversification into investments beyond cash equivalents. Just how aggressive a person can appropriately invest involves a number of considerations including suitability, risk profile and time horizon or how long you intend to be invested.

If seeking to outpace inflation, it might be appropriate to consider placing a portion of your portfolio in diversified investments that are to some degree growth-oriented. Notably, increased potential for higher returns that provide 'growth' of assets also comes with increased risk and volatility. However, if you have a longer time horizon for your investment, accepting some risk and volatility may prove worthwhile to help protect against the effects of inflation, which carries an uncertain degree of risk itself.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs