Contrary to popular belief, financial wealth is not just about earning a large income, wearing expensive clothes, driving fancy cars, or owning a large home. Financial experts describe wealth as based on one’s ability to have enough assets to maintain their current standard of living after retirement. In addition, wealth is linked to their ability to regularly make charitable donations and eventually, build a legacy to improve the lives of their children and grandchildren.
Despite the U.S. being quantifiably one of the richest countries in the world, many Americans have little knowledge of how to effectively manage their assets prior to retirement. Consider this, at age 65, statistics show only 19 out of 100 people are financially independent, while 46 out of every 100 are dependent on their children or other resources to maintain their standard of living. Even more alarming is 15 of the 100 will be living below the poverty level established by the government. And while most of us were taught how to make a living, very few people have learned how to save their money, let alone how to increase their savings thru various investment opportunities.
So how do you overcome the potential roadblocks to financial success and create wealth? The first step is find a trustworthy and well educated financial advisor to serve as your guide. Together you can create a roadmap to success that will account for typical hurdles like the ever rising cost of living and taxes, which can be one of the largest contributors to the erosion of your wealth if not managed appropriately. Top advisors not only make recommendations on investment opportunities, they also help you plan for major life occurrences like buying a home, having children, college funds, retirement, etc.
Today’s investor has access to more information than ever. They also must find a way to cut through the “noise”. Compare how the investor faired against the S&P 500. According to Dalbar, from 1993-2013 the investor averaged a 4.25% return while the S&P 500 enjoyed 9.14%. Let’s face it, investing is hard and even harder when you go it alone. “The investor’s chief problem–and even his worst enemy–is likely to be himself,” said Benjamin Graham, a legendary American investor, scholar, teacher and author. In order to make the most of your investments and your future, ongoing financial coaching and guidance is an absolute must.
Don’t become your own biggest roadblock to wealth. Seek guidance from a financial advisor today and begin creating your own roadmap to financial success and true wealth.
Money Concepts International