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The Lipstick Index and Retirement Goals

Lipstick and Retirement Goals
3 Minute Read

Are little luxuries, and the lipstick index, an indicator of economic outlook?

Key Points
  • There are many indicators of economic growth
  • Hemlines, haircuts and dry cleaning have been claimed as indicators as well
  • Managing retirement is for every economic season

The Lipstick Index

In terms of judging the economy and how it’s doing, there are many indicators that can be looked at, and not all of them are equal in terms of what they represent. But the lipstick index simply means that when Americans are less sure of the economic path of the country, they spend less on little luxuries, like lipstick.

But with COVID-19 and a worldwide pandemic in place, came the mask orders, in an important effort to stop the spread of coronavirus. So, workers are staying home in droves and utilizing virtual tools to accomplish their goals. Students did the same, learning from kitchen tables and living rooms.

Masks, Masks, Masks

Wearing a mask is probably the second greatest thing you can do to prevent the spread of COVID-19, after staying home and socially distant from others. So wearing a mask out in the world is the new normal, at least for now. The lipstick index cannot apply in a mask-wearing society because lipstick wearers do not apply it underneath their masks.

So what are some better ways to indicate economic confidence?

Retirement Goals

Instead of looking to luxuries buying, take a look at your retirement plans. What do they look like? If you’re working for a corporation and aren’t seeing the retirement returns you’d like, you can consider other options. There’s a whole world of investment opportunities out there and you can make wise decisions with your own funds.

Self-Directed IRA

A Self-Directed IRA can be beneficial to you because you can control your own retirement investments. What does that mean? It’s part of the self-directed retirement options.The Self-Directed IRA LLC offers the ability to use retirement funds to make almost any investment without requiring the consent of a custodian. There are numerous choices for investments.

Real Estate

Real Estate is the most popular alternative investment for self-directed retirement accounts. Investment opportunities abound in rental properties, multi-family properties, condos, and land.

Private Placements

Private placements is a great way to grow a business by selling securities or membership interests to a small group of investors. Such investors are wealthy accredited investors, large banks and pension funds. Private placements is popular among companies that need funds for a number of reasons, including to raise capital for their business.


Only available since 2009, the cryptocurrency market is still quite young, and somewhat volatile. But investing in Bitcoin and other cryptos is very popular, especially for younger people in the beginning stages of their retirement planning. Many investors see crypto as “the currency of the future” and it has grown in popularity among Millennials, as they feel more confident making cryptocurrency investments over stock market investments. 

Solo 401(k)

Your retirement goals can be met via a Solo 401(k) as well. The Solo 401(k) Plan (also known as the Individual 401(k) Plan) is an IRS approved type of qualified plan. It’s a popular plan created by the Congress and IRS with the purpose of this plan explicitly to benefit any business with zero employees except for the owners. The owner can establish their business as a sole proprietorship, LLC, corporation or partnership.

The Lipstick Index and Retirement Goals

So what do your retirement goals have to do with the lipstick index? Lipstick is marketed as a little luxury, and an indicator of consumer economic faith in the economy. Blown out of the water as an index by the coronavirus and mask-wearing, what can you turn to to make certain your retirement is fully funded?


You can rely on your own self to make investments, manage money, and create real wealth for yourself. Your retirement goals may be lofty, retiring to the French Riviera on a yacht you own, sailing around the world, perhaps, or to your own vineyards. Or you might want to retire and play the doting grandparents for the grandkids, having a fun backyard on a house you’re renting now but can take possession of when you’ve retired.

As always, and in all things, you are responsible for yourself. Taking control of your retirement goals and finances can help you live the life of your dreams, luxuries, and all.

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