Minorities are Welcome

      Unlike the big garden that I grow each summer, this blog is not targeted towards minorities. Most of my garden is devoted to vegetables that local people in my area shun. If I want to sell Collard Greens, I must find a market in the Black Community. Eggplant is a big hit with the Orientals who have located in this area. Europeans love my tomatoes, eggplant, and sweet potatoes. If it wasn't for these folks, I would waste more food than I use. However, this blog is targeted towards is the 75% of people who own no stocks or financial assets at all. Becoming a member of the minority who own stocks is the best way to secure a comfortable retirement and achieve your financial goals.  In this era of ultra-low interest rates, stocks are one of the very few investments that can actually produce a positive return after taxes and inflation. For a young working person, putting aside a modest amount in a retirement account each week makes a lot of sense, especially if your employer offers a match on your contributions. In the old days, just saving money in a savings account produced out-sized returns over time due to the power of compounding interest, but that is not true today. In order to achieve positive returns over a lifetime now, a saver needs the premium that stocks offer in the dividend and appreciation in stock price. Buying a low cost mutual fund within your employer's plan offers diversification and the opportunity to participate in the stock market. I also recommend buying stocks outside of any retirement plan as a hedge against any of life's unexpected surprises. There is even a well discussed acronym that describes today's investing environment: TINA. This stands for "There Is No Alternative" to stocks. I  must admit that as a member of the minority who owns stocks and financial assets, I sometimes feel some discrimination against us in the 25%. Taxes on interest, taxes on dividends, taxes on capital gains and increased record-keeping to track my basis and performance, are all distractions. There are even discussions from left-leaning politicians to tax the amount of your net worth. In the end, the positives far outweigh the negatives and I am happy to be a minority.