What has your hindsight taught you about money, spending, saving, wealth accumulation, and retirement planning?
Your current financial status is based on the financial choices you made many years ago. Some were good; some not so good.
Now, with your 20/20 hindsight, what would you tell your children or grandchildren to do?
What do you wish someone had convinced you to do when you were younger?
Would you have listened? Probably not. Because in general, young people:
- Feel immortal
- Need to experience life for themselves (don’t listen to others)
- Believe they “have time”
Does this remind you of yourself when you were young?
If you were able to travel back in time and give yourself advice, what would that advice be?
Here is my advice to a young me:
1) Question conventional math.
How is it possible that industry-stated returns (for example, 5%) match my expectations, but my ending dollar balance is not as expected? Do the math.
2) Question conventional wisdom.
The financial industry has us accustomed to accepting too much risk, has us believe mutual funds are the answer, touts 401(k)s, and has fees everywhere in their products (hidden and open). Look for safe, secure, consistency of growth leading up to and through retirement.
3) Question your peers’ advice.
Peers tend to hail their wins and forget their losses. Talk to many peers and learn to separate the wheat from the chaff. Investigate; do your homework.
4) If your financial advisor states, “Don’t worry, you have plenty of time!” get a new advisor.
Your goal should be to find consistent, reasonable returns. Volatility is not your friend; it destroys compounding.
5) Don’t ignore or neglect tested, proven, and traditional financial vehicles.
Whole Life insurance, CD’s, savings bonds, etc. have their place. New and shiny (and well-marketed) is not always a good fit.
6) Plan for the worst; hope for the best.
No matter what happens in life, do your best to provide a certain and secure positive financial outcome. Life’s events will take a toll on the best of plans. Disability Income insurance, Whole Life insurance, and Long-Term Care insurance can contribute significantly to outcomes.
Stay tuned…more details will be provided in future posts.
The Finance Fixer is uniquely focused on strategies to provide certainty and guarantees for your financial well-being. We concentrate on your personal situation to help you make the best choices for you and your family.
Friends and family members that you refer to The Finance Fixer will receive a free copy of Pamela Yellen’s New York Times Best-Selling Book, “The Bank on Yourself Revolution” and her CD titled “How to Grow and Protect Your Wealth.”
All whole life insurance guarantees are based on the claims-paying ability of the insurer. Excess policy loans can result in termination of a policy. A policy that lapses or is surrendered can potentially result in tax consequences. Dividends reflect profits and are not guaranteed.