Retirement is a period in the life of an individual when your activity begins to slowdown. This largely as a result of the person stopping employment. Trading Forex during your retirement can be a profitable way of life for any retiree, as it is a viable way to boost your income and continue in that vein. A lot of retirees should imbibe Forex trading as it is a medium for supplementing retirement income – especially looking at the world post-2008 Global Financial Crisis.
Forex can be an investment strategy that will double retirement savings quickly due to its ability to accept leverage. Forex brokers essentially offer 100 times your real deposit on your trading account. This suggest that you tradable cash of $1,000 will translate into $100,000 worth of currencies for use on your trading account.
Considering the nature of Forex trading, we know it is quite addictive and challenging as well. However, in view of the volatile nature of the market, we’ll advice retirees to desist from investing more than they can loss into the market. As much as trading is not a get-rich-quick scheme, the rewards can be high.
It is expected that the trader buys on margin a dedicated percentage of foreign exchange with another currency. It is possible to buy €100,000 with USD. The broker’s margin requirement should not be more than $1,000, hence an attractive investment for anyone. This is also risky as well, as a small change in price movement, could translate into huge profit/loss.
Robert Kiyosaki, who’s the author of the book, ‘Rich Dad Poor Dad’, noted that for anyone to get out of the rat race, we mustn’t work for money, instead money should work for us via investment or business. This is a comfortable way for anyone wishing to generate wealth and retire early. This is one benefit that Forex trading allocates to retiree.
The upside to retirement that is a small capital or fund will make a venry big difference and can go on to yield a huge fortune for an individual trading Forex. A market that prides itself as one of the largest financial market in the world, with trading volumes exceeding $2 trillion a day and if this holds then the Forex market can comfortably share $1,000 for 30 billion Forex traders every day.
Generate Income Trading Forex
An investor is able to enjoy certain tax incentives when they take out to trade Forex in a self-directed IRA (Individual Retirement Account). We have the traditional IRA and the Roth IRA. The retiree should be aware that they both come with their own merits, like the investor can as well decide the type of investment to place in them and also allow an expert manage such account at his/her discretion.
To get on this path, the retiree should open a Forex IRA account with a broker and there are lots of choices to select from, as a lot of brokers offer Forex IRA accounts. I subscribe to the use of the Roth IRA, which is as a result of the fact that profits made here remain untaxed. This is cool, as you turn a $2,000 account into $50,000, and you’re sure paying no dime to anyone.
While it might be risky to tow this path without the require knowhow, you’ll definitely find traders like you who have benefited enormously from this after mastering the art. You can get busy with this in your retirement and make money stress free, as you chill over the internet daily.
Ivan Lutchkov is a Forex trader and content writer. His trading career started with FXOpen.com Forex broker, and he hopes to make his living on Forex, both trading and writing about it.