Creating Your Own Prosperity

Some sobering statistics: Americans nearing retirement hold in a retirement account an average of $136,200. They expect to live on an income of $45,500. The balance in their retirement will provide an income of $9,150. The shortfall is $36,350.*


And, younger workers, expected to live longer than the boomers, are generally not good at guessing what their lifespan will be. In research done by the University of Michigan, among people who thought they had no chance of living to 75 years old, 49% actually did. Of those who guessed they had a 50/50 chance of reaching 75 years old, 75% actually did!


People are holding on to too much cash instead of investing it. This probably dates from the 2008 market decline, from which we’ve more than recovered in the markets.

There are a variety of reasons why someone doesn’t save: a catastrophic event, illness, or accident costing one’s savings, or a job that doesn’t cover the necessities of life, among some. But usually it is something else that you can control. Here are some reasons I often see:


1)     Never developing a habit of saving

2)     Feeling there is plenty of time down the road to begin saving

3)     Believing social security will be adequate

4)     Thinking it’s too hard to deny yourself what you want now

5)     Believing the markets are rigged, forces will conspire to thwart you

6)     It isn’t a priority (Head in the sand)

7)     Believing you will never have enough, always lacking, so why try

8)     Not interested in learning about the financial world, money is bad anyway


If you shift your priorities around so that you put some money away with each paycheck, no matter how small, it won’t take long for you to develop a habit. And it will reinforce itself as you see the account grow week after week, month after month, and year after year.


Pay yourself first, before your bills, before your treats, before your splurges, and pretend you don’t have it, make do with what is left. It is especially easy if you increase it with any raise you get. You’ll never miss it.


And make sure you participate in your 401K or other plan if it is offered by your employer. Call your advisor or accountant and see if you can save in an IRA in addition to the retirement plan at work. Usually, you can.


Set up an amount to automatically be drafted out of your checking account every month and invested in an investment account.


It is a prosperity mindset. Believe you will be prosperous in your life and your later life will be one of ease with financial comfort.


In our profession, we all too often see the mistakes people make. The inherited money that is squandered and the regret felt when it’s gone. The couple nearing retirement learning that their income won’t be enough, and they can’t retire yet. Or people who need to move into their children’s homes. This all takes a toll, destroying their sense of wellbeing.


It doesn’t need to be this way. You have the power to create financial wellbeing. Let us know if we can help.





* New Survey from Blackrock.

This entry was posted on Thursday, October 29th, 2015 at 6:57 pm and is filed under Blog Posts.

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