We may need to change
them to better our financial prospects.
Provided by Benjamin Bogetto
Our relationship with
money is complex & emotional.
When we pay a bill, go to the mall, trade in a car for a new one, hunt for a
home or apartment, or pass someone seemingly poor or rich on the street, we
feel things and harbor certain perceptions.
Are our attitudes about
money inherited? They
may have been formed when we were kids. We watched what our parents did with
their money, and how they managed it. We were told how important it was – or,
perhaps, how little it really mattered. Parental arguments over money may be
ingrained in our memory.
This
history has an effect. Some of us think of money, finance, investing, and
saving in terms of getting ahead, in terms of opportunity. Others associate
money and financial matters with family struggles or conflicts. Our family
history is not responsible for our entire attitude about money – but it is,
undoubtedly, an influence.
Our
grandparents (and, in some cases, our parents) were never really taught to
think of “retirement planning.” Just a century ago, the whole concept of
“retiring” would have seemed weird to many Americans. You worked until you
died, or until you were physically unable to do your job. Then, Social Security
came along, and company pensions for retired workers. The societal expectation
was that with a company pension and Social Security, you weren’t going to be
impoverished in your “old age.”
Very
few Americans can make such an assumption today. Many are unaware of the scope
of retirement planning they need to undertake. An alarming 54% of pre-retiree
respondents to a 2016 Prudential Financial survey had no clue how much they
needed to save for retirement. Additionally, 54% had balances of less than
$150,000 in their workplace retirement plans. Have they been lulled into a
false sense of security? Did they inherit the attitude that when you retire in
America, Social Security and a roof over your head will be enough?1
How can pessimistic
attitudes about money, saving, & investing be changed? Perhaps the first step is to recognize
that we may have inherited them. Do they stem from our own experience? Or are
we simply cluttering our minds with the bad experiences and negative
assumptions of years ago?
One example of this leaps readily to mind.
Earlier this year, Bankrate surveyed investors per age group and learned that
just 33% of millennials (Americans aged 18-35) owned any equities, while 51% of
Gen Xers did. (That actually represented a dramatic increase: in 2015, only 26%
of millennials were invested in equities.)2,3
College loan debt and early-career incomes
aside, millennials watched equity investments, owned by their parents, crash in
the 2007-09 bear market. Some are quite cynical about the financial world. A
2015 Harvard University study showed that a mere 14% of respondents aged 18-29
felt that Wall Street firms "do the right thing all or most of the time”
as they conduct business.3
How do you feel about
money? What were you
taught about it when you were growing up? Did your parents look at money
positively or negatively? These questions are worth thinking about, for they
may shape your relationship with money – and saving and investing – here and
now.
This material was prepared by MarketingPro, Inc., and does not
necessarily represent the views of the presenting party, nor their affiliates. This
information has been derived from sources believed to be accurate. Please note
- investing involves risk, and past performance is no guarantee of future
results. The publisher is not engaged in rendering legal, accounting or other
professional services. If assistance is needed, the reader is advised to engage
the services of a competent professional. This information should not be
construed as investment, tax or legal advice and may not be relied on for the
purpose of avoiding any Federal tax penalty. This is neither a solicitation nor
recommendation to purchase or sell any investment or insurance product or
service, and should not be relied upon as such. All indices are unmanaged and
are not illustrative of any particular investment.
Securities offered through First Heartland Capital, Inc. Member FINRA/SIPC
Bogetto Financial is not affiliated with First Heartland Capital, Inc.
Bogetto & Associates does not provide legal or tax advice. These topics are discussed in conjunction with your CPA, Tax Advisor and Attorney.
Citations.
1 - businessinsider.com/reasons-for-americas-retirement-crisis-2016-11
[11/29/16]
2 - ibtimes.com/should-you-invest-stock-market-why-millennials-might-be-missing-out-when-it-comes-2389589
[7/6/16]
3 -
thestreet.com/story/13135109/1/why-millennials-dont-trust-wall-street-or-investing-in-stocks.html
[5/2/15]
Financial Health...For Now & Tomorrow
Contact us Today
Website - www.bogettoandassociates.com
Telephone - 314-858-1602
Email - peter@bogettoandassociates.com
10805 Sunset Office Drive, Ste. 202
St Louis, MO 63127
Website - www.bogettoandassociates.com
Telephone - 314-858-1602
Email - peter@bogettoandassociates.com
10805 Sunset Office Drive, Ste. 202
St Louis, MO 63127
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