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November 18, 2010

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The stock market is very volatile and erratic. I will not advise playing on Wall Street for retirees to burn their funds away. They are better off with a small business.

I appreciate your comment! Both endeavors involve risk; one you control (the small business); the other you experience passively (investing in a portfolio of stocks). Overall, the risk associated with running a small business is probably greater than that from investing in stocks -- but I am talking about both sides of risk -- the risk you may lose AND the risk you may gain. Risk is "uncertainty." Typically, as we approach retirement, we need to limit our risk exposure and maintain capital as we have fewer opportunities and less time to recover from a loss.

I agree. I know of several retirees from the corporate world that are active in the stock market.

I also believe that the stock market is a little too risky for retirees to venture in unless they have started their investments early on.

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