Financial Idea's Blog

Some Financial Advisors Are Doing Well In Today’s Economy

Why is this? It’s because they have the presence of mind to step back and look at the big picture. Remember the chart in the last article (below) about saving money in an IRA for 50 years?

Look at the early years in that graph.

That was a test.

What are the early years? The first one, two, three? There’s hardly any difference between that and the start. “You mean I’ve been investing for three years with you now and I’ve hardly made anything? I’ll never get anywhere!”

If only I didn’t hear that, like, all the time! But that’s not the end of the “early years”. I’m not talking about 3 years, or 5 years, or 10 or 15 years. I’m talking about 20 years before you really see the difference in that case, after which the growth really starts to become noticeable and just accelerates from there. This is why you should start as early as possible, build a trusting relationship with a competent advisor, and then be almost impossibly patient. I’m not suggesting that you buy-and-forget. On the contrary, you should be working with an advisor who is not afraid to take time with you and educate you. What I’m suggesting is that you realize that it will take time, but if you do it, time will be on your side.

Now, what if you want your money to grow faster that what we see in the chart? Can you do that without saving anything more? It’s possible, but it involves more risk than you might be comfortable with. A much better approach is to continually add to that savings, every paycheck. If you budget properly, you’ll make that a key part of your planning and you’ll pay yourself first!

Let me say that again. Pay yourself first. I doubt that there are three more important words that anyone will ever say to you, unless they are “I love you”. You don’t need a new car as much as you need to have the choice to retire someday, preferably when you want to.

Want to know more? Let’s talk, and create a plan that’s right for you and your family.

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