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Making Money or Making Mistakes eBook ● Marwieh Advisory Services, LLC © 2019
Is Your 401k/IRA Making Money or Making Mistakes?
Americans have often been encouraged to pursue the American Dream of achieving financial independence by getting a good college education, secure a good job, save for retirement, have a family, and own a home (with a white picket fence preferably). Of course this then comes with the usual assortment of toys (boats, cars, etc.). Unfortunately, some never achieve that milestone due to life's setbacks and individual choices that are often made without truly realizing the impact on their finances. Interestingly, we are seeing that the financial choices most families are making are often a counter to them achieving the very financial independence they dream off or deserve. What do I mean by this? Well, in order to fully understand what is going on and why this is a problem, we first much dig into what type of general financial education we get through out our school years. The truth is that for most Americans, we were never provided any basic financial education with regards to budgeting, balancing ones checkbook or for that matter taught the real impact of the misuse of credit/debt throughout elementary, middle school, high school, or our college years. This lack of a clear understanding of the correlation between asset accumulation and liabilities (debt/credit) is deeply felt in our society today bankruptcy at a record high. The end result is that we see across America today: Poor spending/saving habits (Over $2 trillion in consumer debt today) Overconfidence in home equity loans and borrowing money (we often use home equity to acquire items that does not appreciate in value nor increase net-worth We want everything now - Immediate Gratification ( there used to be a time when you could put things on layaway and pay for it when you had saved up) No focus on smart & strategic wealth building in most homes (we never learned from grade school how credit/debt can be a counter weight to achieving good finances) This trend is even more apparent when you consider our federal budget and the lack of any real movement toward balancing it. That however, is a conversation for a different day. For now, what we need you to be clear about is that making sound financial decisions often requires a clear understanding of your present circumstances and a willingness to explore options that may even seem counterintuitive at times but yet can usher in a better financial and secure future. In other words, getting organized is paramount in knowing where you are, where you need to go, and how you plan on getting there. That being said, getting organized needs to be the first step in your journey towards financial independence. Lack wise, it is the first step to getting your 401k/IRA plans back under control in order to transition your current 401k/IRA plans into one that actually can make you money today rather than the continuous volatility effect that so often has plagued 401k/IRA plans over the years ... make money some years, to be followed by losing it in other years.
401k & IRA Plans
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01 - Lack of Financial organization
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making Money or Mistakes
Thank for reading Part 1 of our eBook Series, "Is Your 401k/IRA Plan Making Money or Making Mistakes" . I hope it has been insightful and educational. Please stay tuned for the next chapter in our evolving dialog, "Is your 401k/IRA plan making money or making mistakes"; Part 2 - Diversification by Asset Class, Is It Working?
Until next time, Happy Journey to Financial Empowerment.
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