Financial Planning 2017: A Fresh Look at Personal Budgeting

One of our financial planning tips is to make your savings work harder than social security or a tiered pension plan.

Are you on a budget - whether you realize it or not?  You are on a budget if you have no debt except for a home mortgage, and maybe a car loan, but you cover your expenses and save each month in an employer-sponsored retirement plan and a personal savings account.  It’s as simple as that!  Congratulate yourself! You are now ready to get serious about your future because you are responsible for your future.

Pension plans never did guarantee a great income, nor does social security.  Those plans equal a wilderness survival kit.  You are stuck with them; you can’t withdraw from them, but they will never provide a lifestyle in retirement that is as good as the way you are living today.  To have your retirement lifestyle mirror or be better than today’s, you need to make your savings work much harder than social security or a tired pension plan can.  (401k plans fall into “your savings” category.)

There is average, and then there is better than average.  Most people and investments want you to be average.  That is what robo investing and index investing is all about.  Being average.  The plan sponsors tout their “low fees”, but they are not low at all because you are getting so little return while they earn a lot because they are not providing you with anything except the numbing idea that you are paying less.

Is that the way you buy a car?  Or a smartphone?  Do you always want to pay less?  Or, do you want certain luxuries and pay a little more, even though you are still living within your budget?

Investment success demands much more than “being average.”  It requires a logical system of knowing what “the number is,” understanding the type of investments that will get you there, and “hand holding” from a caring counselor when “staying the course” is tough. Rest assured there is a number that will work for you because you are willing to save each month.  Rest assured there are financial planners and investment advisors that will help you and be honest about what you need to do. Googins Advisors specializes in helping people in that way.

For more financial planning tips for the New Year, contact us today to schedule an appointment with one of our financial planners.

 

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