|
 With the vast majority of "401(k) generation" Americans destined to outlive their savings, is there a strategy that can turn the average worker's golden years platinum? Equity strategist Phil Dow has a new book that offers a common sense answer with an unusual name: "bulldog investing."
"The reality of the stock market is that investors build wealth by buying and holding onto the stock of solid companies for the long term," says Dow. "These stocks are "bulldogs" -- tenacious, proven fighters and winners."
Dow, author of the new book "The Citizen Investor" (RBC Dain), says his idea is not about simply buying the stock -- the real key to success is in the power of ownership. Bulldog investing is not about being passive, but being passionate, an investor who studies and reads widely about the company they've bought stock in.
"This approach can not only bring enjoyment, but financial gains from understanding the strategies and successes of your investments. It's not a strategy of owning and trading stock certificates, it's about owning firms you believe in."
With length of life reaching unprecedented levels and the cost of retirement rising rapidly, saving for retirement is turning into one of the most important issues facing baby boomers and beyond. But, the fact that more companies are offering 401(k) plans to their employees isn't solving the problem. In fact, a 2003 Roper poll found that only 42 percent of Americans are saving for retirement and only 39 percent said they expect to have enough money to live comfortably in retirement.
"The government has given Americans tools to create their own retirement, but has done little to educate them on how to do it," Dow says. "Bulldog investing is just one method of taking control of your own retirement."
The title of Dow's book refers to the breed of Americans whose savings helped create the capital that has historically fueled the growth of the country; making them wealthy in the process. But while everyone is looking for that edge -- the maverick stock that will take off, the quick in and out deal that could net a fortune, the newest trend -- the fact is that the most reliable and lucrative path of investing is in the tried and true.
"I have met ‘citizen investors' all across the country," Dow says. "They are the people who invest in Microsoft in Seattle, Dell in Texas and Medtronic in Minneapolis. These investors have traditionally found companies located in their backyards, know the employees and managers, many of whom may be their neighbors, and developed a strong understanding of these companies. Ownership of them is a natural motivation for them."
Dow is chief equity strategist for RBC Dain Rauscher, the eighth largest full-service brokerage firm in America. The ideas for his book were developed over the more than 30 years Dow has spent in the securities business. In his job Dow meets with thousands of individuals each year, listening to their concerns while spreading his idea of ownership as a metaphor for the way investors must approach this brave new world of investing.
Dow relates his personal experiences, both as a leading investment consultant and an average investor, along with practical examples of people from all walks of financial life. "The Citizen Investor" gives readers the understanding and information necessary to begin to make strategic and confident choices for their financial future. "The traditional approach to investing for retirement has been dependent on some very reliable factors: checks from fixed benefit pension plans and Social Security," Dow says. "In the coming decades, a huge number of investors are going to wake up to the fact that they are now responsible for the success or failure of their retirements."
"The Citizen Investor" shows readers that becoming a citizen investor will empower them to take control of their financial destiny instead of relying on others, and teach them how to be well-informed and savvy investors.
About the Author - Because Saving for a Rainy Day No Longer Works
ARA Content |
Home 
