The Beardstown Ladies’ Stitch-in-time Guide to Growing Your Nest Egg
The Beardstown Ladies’ Investment Club members have become celebrities following their appearances on television shows such as DONAHUE, 20/20, and CBS THIS MORNING. The sixteen members of the club, mostly retirees, owe their fame to their record for outperforming the Standard & Poor 500, averaging a 23.4 percent return on their stock investments over the eleven years the club has been in existence. Their first book, THE BEARDSTOWN LADIES’ COMMON-SENSE INVESTMENT GUIDE, instructed readers on how to choose stocks that could double in value within five years. Using the same conservative principles, their second book presents a logical sequence to save enough to ensure a comfortable retirement. Younger people who use compound interest wisely and invest early have a better start toward reaching their retirement goals than those who wait until late middle age to think about saving.
The first step is to dream about retirement and clarify needs. Those who want a quiet life in the country might choose more risk-free investments than those who want to travel around the world and are willing to take chances to gain more money. Whether children or grandchildren will need financial help to attend college about the time a person hits retirement age is another factor to consider.
Basic budgeting is a requirement, as is determining personal assets and liabilities. After describing how to calculate an individual’s net worth, the ladies stress several basic themes: start saving early, pay yourself first (put the money into savings before paying other bills), pay credit card bills on time, take advantage of retirement savings through your work (annuities, pensions, 401K plans, and Keogh plans), and diversify your investments for balance and security.