Sunday, July 29, 2018

Being Smart With $$ -- Poverty is More Fun Than Being Rich...But....


Being Rich is No Fun! In many cases, we have the option to be rich but many of us choose to be poor because it is far more fun! Poverty is more fun if it means spending all your money on everything you want day to day. Being rich often means foregoing all those great toys and experiences we are offered. What does it mean to be rich? It varies in opinion but let’s say it’s having $2 million or more saved. If you power save starting at age 40 and invest $25,000 a year in the stock market earning 8% annually, by the time you retire at 67 you’ll have almost $2.2 million. VOILA! You’re rich! But only at the expense of missing out on that big house, fancy car and awesome vacations your peers may have had. So why would we want to be rich? So that in retirement you can maintain your normal standard of living and not have to work until you’re 90 (if you are even able to).  Reaching the age of 60 in a panic and realizing you have nothing saved is a high price to pay for enjoying decades of self-imposed poverty. Going from lobster today to Spam in retirement won’t be easy.  30 years of retirement requires a lot of money and a lifetime of saving can get you through it. And no matter how old you are and how far behind you may be, now is the time to create a plan to get you to your goals.

Larry Pike, CFA
Client Priority Financial Advisors LLC
www.clientpriority.com 

Saturday, July 14, 2018

Being Smart with $$ -- Investors Make Mistakes but Guidance Helps


Investors make so many mistakes. We panic and sell at the wrong time, we jump on a hot sector often right at the end of its hot run, we fail to diversify properly and we time the market mistakenly believing we can generate excess returns when research shows that usually the opposite happens. A good financial advisor can help you avoid making these mistakes. My clients tell me that sensible guidance and having a voice of reason helps keep them on track. Consider if you are making mistakes and whether you need some guidance to achieve your long-term financial goals.

Larry Pike, CFA
Client Priority Financial Advisors LLC
www.clientpriority.com