Did you plan your retirement at the water cooler?

What is the value of financial knowledge?  If you want to retire, it’s priceless.  Yet I know that many retirement decisions are made from information picked up at the water cooler.   You know, what % of your 401k is going to the growth fund?  We can’t help it; we don’t know what we don’t know.  But retirement planning is one of those areas that deserves some time and consideration.

Who cares more than you do?

So where do you turn for help?   No one cares more about your money/financial status than you.  How do you make long-term decisions?  Who do you ask?  Who are your “advisors?”Do you use an attorney or a CPA?  Do you ask or insurance agent?  Maybe call your stockbroker?  Is it your brother-in-law or the water cooler guys at work that mold your thinking?If we are thoughtful, perhaps we look at CNN or the Money Magazine to learn for ourselves.    As you listen to what they say, consider the source.  What are their motives?  Are they selling something? 

What is the make-up of your Financial IQ?

Did you know you even had a financial IQ?  How do you feel about money and money decisions?  Many of us draw from personal successes or sad experiences.  Some of us rely on family experiences or our observations of others.  Then there is the influence of the incessant press of financial news.  If you don’t know enough about where you are investing, it’s time to learn.  Don’t just take the word of the financial practioners in your life, verify what they are saying and decide if it applies to your situation.

What I am saying is your retirement needs to be controlled by you.   Invest in areas that you understand.  If you don’t understand much, then learn about a simple product like a fixed return life insurance policy or a small mortgage note.  Learn the potential pitfalls as well as the likelihood of success.  You will likely experience some of each.

Expectations mirror understanding

If you don’t know any better, then you accept whatever rate of return the bank is paying you on your CD.  As you learn that there are other options out there with similar risk, but pay higher returns, then your expectations will also change.

Our firm loves to show people new options.  These options are generally more transparent and understandable then what people are currently using.  Many of our clients have moved some of their money into products that they understand.  Most of our products feature cash flow, and tangible ownership.  If this sounds like something you would like to learn more about, take a few minutes to explore our

financial assessment questionnaire.

Access it at Main Street Planners