The article below does a good job of pointing out some of the supply/demand problems that Baby Boomers face in meeting their retirement goals. It isn’t practical to invest in overly diversified mutual funds or ETF’s and expect the returns that most investors need to maintain their same living standards into retirement. At T&T Capital Management we use an active strategy where we buy stocks at deep discounts to intrinsic value. Often these companies are in out of favor, or potentially distressed industries, and we are able to take advantage of a time arbitrage as the outlook improves. These opportunities to buy businesses at 50-60% discounts to intrinsic value are only available because the majority of Wall Street focuses on the short term so they aren’t willing to use the patience required to actually “invest”. In addition to this we incorporate the selling of stock options for the purposes of reducing risk, generating income, and to instill disciplined selling practices. These strategies take time and discipline but the payoff can be tremendous. When I read articles like this WSJ one, I’m befuddled by the lack of real advice or a plan on how to attack the problem. I truly believe that our method offers the best opportunities for those that are focused on maximizing risk adjusted returns, and that have a reasonable time horizon.
INVESTING IN THE FINANCIAL MARKETS INVOLVES RISKS. OPTIONS ARE NOT SUITABLE FOR ALL INVESTORS.