It amazes me the answer I get when I ask people why they have never gone to a Financial Planner. They tell me it’s because they don’t have any money. They figured they would have to have lots of money before the Planner would want to talk to them. That may be true of some Financial Planners in our industry, but definitely not all. The truth is, if you don’t have any “extra” money to save for your future, you definitely need to go see a Financial Planner. According to the Employee Benefit Research Institute's (EBRI) 2010 Retirement Confidence Survey, 43 percent of Americans have less than $10,000 saved for retirement. Let’s take a look at some of the reasons why.
Reason 1. Not paying yourself first. Each month, you get your paycheck, deposit it in the bank and what’s the first thing you do? Go out to eat a nice dinner with your family because you “deserve it”. You have been working hard, you earned the right to splurge a little bit, right? Wrong. Most people fall in to this trap. This way of thinking is exactly why some folks will never be able to retire comfortably and without relying on their family or the government.
Rule of thumb: When you get your paycheck, 10% to your church (Tithing), Save or invest 10%, Pay bills with the next 70% and then play or reward yourself with the last 10%. If you have done all those other things with your money first, then you deserve a reward, not before.
Reason 2. Thinking you have plenty of time. Tomorrow is a promissory note, yesterday is a cancelled check, today is the only legal tender you can spend. You might trick yourself into thinking that retirement is a distant dream, but honestly, the future starts now. When you will retire, how much you will have and how confortable you will be in retirement is affected by what you are doing today. Are you saving enough? Are you taking advantage of a retirement plan at work?
Reason 3. Not getting educated. Nobody expects you to be an expert at saving or investing money. You have a full time job that you are good at and work hard at. You can’t be an expert in managing money at the same time. That is why you should work with a Financial Planner. He or she can help educate you and guide you through all the twists and turns of life and make sure you are taking all the necessary steps to achieve your goals. Making financial decisions is not easy, but it can be easier with the help of a professional on your team.
Reason 4. Fear of looking stupid or dumb. Sadly, one of the hardest things for most people to do is admit they don’t know something. They are afraid to ask questions because they might feel embarrassed or dumb. The problem is that most folks perceive that brokerages require large minimums to open or maintain an account. Reality is lots of companies can and will let you open a qualified retirement account for as little as $50 a month if you sign up for automatic contributions monthly. The important thing is that you start with something. Hopefully, no one will try to make you feel uncomfortable or inadequate for saving small amounts. If they do make you feel that way, simply go somewhere else.
Reason 1. Not paying yourself first. Each month, you get your paycheck, deposit it in the bank and what’s the first thing you do? Go out to eat a nice dinner with your family because you “deserve it”. You have been working hard, you earned the right to splurge a little bit, right? Wrong. Most people fall in to this trap. This way of thinking is exactly why some folks will never be able to retire comfortably and without relying on their family or the government.
Rule of thumb: When you get your paycheck, 10% to your church (Tithing), Save or invest 10%, Pay bills with the next 70% and then play or reward yourself with the last 10%. If you have done all those other things with your money first, then you deserve a reward, not before.
Reason 2. Thinking you have plenty of time. Tomorrow is a promissory note, yesterday is a cancelled check, today is the only legal tender you can spend. You might trick yourself into thinking that retirement is a distant dream, but honestly, the future starts now. When you will retire, how much you will have and how confortable you will be in retirement is affected by what you are doing today. Are you saving enough? Are you taking advantage of a retirement plan at work?
Reason 3. Not getting educated. Nobody expects you to be an expert at saving or investing money. You have a full time job that you are good at and work hard at. You can’t be an expert in managing money at the same time. That is why you should work with a Financial Planner. He or she can help educate you and guide you through all the twists and turns of life and make sure you are taking all the necessary steps to achieve your goals. Making financial decisions is not easy, but it can be easier with the help of a professional on your team.
Reason 4. Fear of looking stupid or dumb. Sadly, one of the hardest things for most people to do is admit they don’t know something. They are afraid to ask questions because they might feel embarrassed or dumb. The problem is that most folks perceive that brokerages require large minimums to open or maintain an account. Reality is lots of companies can and will let you open a qualified retirement account for as little as $50 a month if you sign up for automatic contributions monthly. The important thing is that you start with something. Hopefully, no one will try to make you feel uncomfortable or inadequate for saving small amounts. If they do make you feel that way, simply go somewhere else.