These days, everything you were ever told about selecting investments for retirement seems moot. Your portfolio is a mess of worthless bonds, bankrupt Fortune 500 has-been stocks, and let's not even talks about the real estate investments you own. For a lot of people hoping to retire, things look grim, but you can't just give up if you expect to stop working some day - you're going to need income. If you're worried you'll find yourself in this dilemma (or already have), put down those brokerage statements and pick up a Nintendo Wii handset. It may be the key to helping your retirement nest egg bounce back.
Amuse Yourself to Death
In his book "Amusing Ourselves to Death", which was first published in 1985 and has since gone through numerous editions, Neil Postman declares that Americans are trivializing every aspect of life by linking it to some form of entertainment. His mantra: the message is the medium asserts that everything from politics to religion is judged by how well it plays out on TV. It's a doomsday view he attributes to Aldous Huxley's 1931 novel "Brave New World" - that society will crumble due to humans' lust for pleasure.

If you buy int to this hedonistic theory, then what's any good American's response? To capitalize on it. So, for bewildered cash holders waiting for a solid investment, here's a suggestion: Invest in entertainment. (Read Power Up Your Portfolio With Gaming Stocks to learn more about how to capitalize on peoples' need to play.)

All Work and No Play ...
The U.S. Department of Labor agrees with the future increased demand for leisure and entertainment. Their statistics indicate the entertainment industry will enjoys above-average growth. Analysts have been predicting this increase for a long time because they expect baby boomers to retire, and with nothing but time on their hands, turn en masse to leisure activities. Of course, the current recession may delay this somewhat, as many boomers are concerned they no longer have enough savings to retire just yet and those who already have are suffering from huge portfolio declines. Even so, Americans are still traveling, buying tickets to fun events and spending money on games and internet amusements, regardless of the economic downturn. (For related reading, see Top 10 Investments For Baby Boomers.)

Diversity is important in this type of investment, as the definition of "fun" varies widely from person to person and tends to change over time as new sources of entertainment continue to emerge. Cruise lines, movies, video games and entertainment production companies, along with internet related investments are examples. If you don't want to choose yourself, there are entertainment and leisure mutual funds with multiple types of investments in them.

The amount you allocate to this sector depends on your stage in life and risk tolerance. Just remember to offset any sector investments with a variety of other sectors regardless of your situation. Issues related to entertainment investments include high volatility and cyclicality.

If you're concerned about whether this is a good time to get into the entertainment sector, remember your goal is to buy low and sell high, so seek out those investments with plenty of upside potential and don't wait until everyone else decides to jump on board.

Take a Ride
The entertainment industry is one place to put your money for a fun stock market ride. If you choose your investments carefully, this is one sector with the potential for both short-term upside and long-term growth.

Related Articles
  1. Fundamental Analysis

    Examining Mexico's Trillion-Dollar GDP

    Examining the gross domestic product growth and composition of Mexico, the second largest economy in Latin America
  2. Fundamental Analysis

    What Causes Inflation in the United States

    Inflation is the main catalyst behind U.S monetary policy. But what causes this phenomenon of sustained rising prices? Read on to find out.
  3. Term

    What are Pension Funds?

    A pension fund is a company-sponsored fund that provides income for employees in retirement.
  4. Fundamental Analysis

    Is India the Next Emerging Markets Superstar?

    With a shift towards manufacturing and services, India could be the next emerging market superstar. Here, we provide a detailed breakdown of its GDP.
  5. Professionals

    How to Protect Elderly Clients from Predators

    Advisors dealing with older clients face a specific set of difficulties. Here's how to help protect them.
  6. Professionals

    Social Security 'Start, Stop, Start' Explained

    The start, stop, start Social Security strategy is complicated. Here's what retirees considering it need to consider.
  7. Retirement

    Strategies for a Worry-Free Retirement

    Worried about retirement? Here are several strategies to greatly reduce the chance your nest egg will end up depleted.
  8. Professionals

    Index or Target Dates in 401(k)s: Which is Better?

    A common question is whether or not plan participants should choose index or target date funds in a 401(k). The answer depends on different scenarios.
  9. Retirement

    Why are 401(k) contributions limited?

    Find out why contributions to 401(k) retirement plans are limited, including what the current contribution limits are and how limits encourage participation.
  10. Term

    Estimating with Subjective Probability

    Subjective probability is someone’s estimation that an event will occur.
RELATED TERMS
  1. Cost Accounting

    A type of accounting process that aims to capture a company's ...
  2. Zero-Sum Game

    A situation in which one person’s gain is equivalent to another’s ...
  3. Supply

    A fundamental economic concept that describes the total amount ...
  4. Principal-Agent Problem

    The principal-agent problem develops when a principal creates ...
  5. Discount Bond

    A bond that is issued for less than its par (or face) value, ...
  6. Internal Rate Of Return - IRR

    A metric used in capital budgeting measuring the profitability ...
RELATED FAQS
  1. What are the best ways to sell an annuity?

    The best ways to sell an annuity are to locate buyers from insurance agents or companies that specialize in connecting buyers ... Read Full Answer >>
  2. What are the best ways to use your 401(k) without a penalty?

    The best way to use your 401(k) retirement savings account is to take normal distributions after you reach retirement age. ... Read Full Answer >>
  3. How are spousal benefits calculated for Social Security?

    The amount of your Social Security spousal benefit depends on a number of factors, including your age, the maximum amount ... Read Full Answer >>
  4. How does divorce affect Social Security benefits?

    If you are eligible to receive Social Security retirement benefits on your own account, your marital status has no impact ... Read Full Answer >>
  5. Are Social Security benefits affected by marriage?

    The amount of Social Security benefit you are eligible to collect upon retirement is not affected by marriage. Your benefit ... Read Full Answer >>
  6. Can I take my 401(k) to buy a house for my children?

    Under the standard regulations for 401(k) retirement savings plans, you may elect to withdraw funds from your 401(k) for ... Read Full Answer >>

You May Also Like

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!