Retirement planning often turns out to be a tedious exercise owing to growing volatility of the market. You might as well have a quality life planned just before your retirement but there is no guarantee that the particular investment option mulled by you, will not suffer a setback owing to the market crashing big time. Today, Forex remains one of the smartest post retirement investment strategies we have. Trillions of dollars are traded here every day and it remains one of the popular investment options. Today, we will be discussing about the viability of forex trading as a post retirement investment option.
Why should you invest in forex after retiring?
If you are still unaware of how forex works, then it won’t be difficult for you to find out answers to the same and start trading with the online forex broker.We here, however, are not concerned with the basics of Forex. We will be focusing primarily on the prospects of Forex as a post retirement investment plan.
One of the biggest reasons why you (or for that matter anyone else) would like to invest in forex trading is the small amount of money required to open an account here. There are several brokers who might as well allow you to start trading with money as low as $200 – $250. The market offers very high leverages. So, you, basically are allowed to carry out larger transactions with the help of small amounts of money. If you are able to execute trades prudently then you would be able to double your retirement savings – just by the virtue of the high leverage involved in Forex.
You will also be able to practice with the help of demo account for a month or more if you wish to. A demo account enables you to trade under real market conditions but with fake money. You will be offered the “real” trading tools like graphs, charts etc but there is no real money involved. The more time you get to practice, the better it will be for you. Property, besides forex, remains another major investment option for retirees. However, the not-so-old housing bubble burst caused a major alarm among investors. The immediate effect of the bubble burst, however, was for everyone to see. People lost huge amounts of money and investors, in general, have shied away from putting their money here. The apprehension has prevailed even after the plummeting prices of houses in general.
What you need to watch out for
It is very important to understand that there are a few cons of trading in the Foreign Exchange market as well. You can end up losing all your money in a highly leveraged trade if you are not prudent with your trading choices. Plus, you cannot really start trading immediately after retiring. You have to dedicate months to educate yourself about the basics of trading and practice trading with demo account. Make sure you are considering both the pros and cons of trading with forex before you actually start trading.