You are 55 years old (or somewhere around there) and your company is going to force you to retire at 65. You have $35,000 saved in your 401K and thats all. The house will be paid for by then so you will have a place to live. The company pension will pay about $1,000/month and so will Social Security. What will my life style be like at that time?

Let me give you a clue. You are going to need just about as much as you are making now even with the house paid for. If you are lucky you might have health insurance with your pension, but dont count on it. You hope Uncle Sam will help out. But dont count on it.

When that savings you have runs out maybe one of your kids will let you and the misses have the spare room. Scary, huh! Maybe one kid lives in Minnesota where you can spend the summer and the other in Florida where the winters will be nice. But dont count on it.

You might get lucky and buy one of those stocks that skyrocket from $2.00 to $200. Those chances are 1 in 100 and you dont have enough money to be taking chances. But dont count on it.

Whatever time you have left between now and retirement you should start managing your assets to have them grow and compound better than in the past. If you continue to do what you have done you are going to have the same results. It is a choice between cat food and filet mignon.

A better portfolio manager is not the answer. Saving more will help, but you need to live today. Having your house paid for is a huge plus. A second job with all that income going to savings makes sense if you can do it.

One of the better solutions is starting a business you can run from home. The Internet has many offers. My caveat here is never send anyone upfront money. It takes the Avon lady 3 to 5 years before she makes any money. There are many legitimate small businesses like this that can provide a second income, but you must invest both time and effort and be persistent. You must work it every day.

Dont choose any business that requires a substantial capital investment. If you have a friend or relative that has a home-based business you will want to spend time with him. Even if you dont use that vehicle you can learn plenty from that person.

You local library has hundreds of books devoted to helping folks start a business. The Internet is a great source. Take time to investigate and dont take anyones word for their pie-in-the-sky story. Always get references and carefully check them. You want to talk to someone who recently started in that business about 6 months ago, another about a year before and a third about 2 years prior. Maybe several of each. Once you make the commitment you must hit the ground running and dont stop. Either it will work in a few months or it wont. Hard work is the only way you will find out.

It is not too late provided you start NOW.

Al Thomas

Albert W. Thomas has spent most of his life in the field of finance. In 1965 he founded an insurance holding company, Security Dynamics Investment Corporation, after having been an agent and General Agent for several life insurance companies. In 1970 he became cofounder and president of Real Life Estate, Inc., that marketed a unique real estate and life insurance package.

After he became interested in commodities he bought a seat for his personal trading on the Chicago Open Board of Trade, which is now known as the MidAmerica Commodity Exchange. Later he became a full time trader and also acted as a commodity broker for a few select clients. By fellow floor traders Al is considered to be an excellent technical analyst much of which is outlined in his book IF IT DOESN'T GO UP, DON'T BUY IT! It became a best seller on Amazon.

In 1981 he sold his membership on the Exchange and with his wife, Carolyn, lived full time aboard their 41' ketch, the Aumakua (which means guardian angel in Hawaiian). They sailed in Florida and the Bahamas for two years.

He founded World Trading Group in 1984 that grew to the seventh largest introducing commodity brokerage firm in the U.S. with 35 offices from coast to coast, Alaska and Canada. It was sold in 1992.

Al is a graduate of Northwestern University with a B.S. degree in Commerce and is a member of MENSA. He is now president of Williamsburg Investment Company that syndicates his weekly financial column since 1999 to more than 300 newspapers and writes a financial market letter called Over My Shoulder that is quoted in Barron?s and many other publications. A 3-month trial subscription is available on his web site. He is a regular guest on several financial radio talk shows.

His favorite pastime is fishing.

Mr. Thomas is available for speaking engagements. Please call 321-453-5300 for more information.