American Consequences - December 2018

THE BEST NEW YEAR’S RESOLUTION

Why? Because no one else will teach you. The only person who truly cares about the future of you and your family is you. Wealth is certainly not the be-all and end- all of life, but it is one area of expertise I feel comfortable talking about... More important, everyone can easily make great strides by changing the way he or she thinks about wealth in just a few small ways. 3. YOU CAN CONTROL YOUR FINANCIAL FUTURE. First, resolve that this is the year you’ll set your financial plan in motion. Next, come up with a simple, two-step saving and investing plan that works for you. If you’re working with an adviser, have him explain his thought process behind regular saving and investing. And if you’re new to investing, resolve to invest in your first mutual fund by the end of February. It doesn’t need to be a lot. You can invest small amounts by using an online service. Start with $50, or even $25. You can do it. You can and should use the help of experts. But remember, they’re working for you, not the other way around. Again, I’ll put it simply: • You have to (and can) make a simple plan for your retirement future. • You have to (and can) understand your finances. • You are the only one you can count on to do it.

decades, the folks in Washington screamed how broke the fund was. And each year, they took away more and more of what was promised from the money you paid. And you can’t count on financial planners to protect you, either. When I talk to people about their investment planning, they say something like, “I don’t know. My guy has got me invested in some funds or something.” That simply doesn’t cut it. Your “guy,” as good as he may be, doesn’t care about your wealth as much as you do. Many are happy to take your cash in fees or annual charges... money you could easily use to improve your retirement if you paid a little more attention. This doesn’t mean you need to spend all day trading stocks or becoming an expert in finance. You just need to know what your guy is doing and why. If he won’t sit down and explain it, fire him. 2. YOU CAN UNDERSTAND YOUR FINANCES. You don’t need to be an expert, but you need to be financially literate. You need to know the words “diversification,” “asset allocation,” and “compounding.” Take 10 minutes this week to understand a little bit about stocks, bonds, and mutual funds. You’ll want to learn about the fees you’re paying, who is getting the money, and if you even need to pay fees at all.

You don’t need to be an expert, but you need to be financially literate.

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December 2018

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