Do you really NEED financial advice? ? NewAgora

Let?s talk retirement.

?But I?m only 27! ?I don?t have to worry about that for a long time!? OR ?Retire? ?Bah! ?At the rate this country is going I?ll never be able to retire anyway!? ?These are the most common responses I receive from young people when retirement is brought up.

The first response is a half-truth. ?Young people don?t have any chance of?retiring?for a long time.

However, this response is actually an attempt to postpone dealing with the responsibility of self-reliance. ?Common sense dictates that the sooner young people enact a retirement plan, the more financial security they?ll have at retirement. (Generally speaking, we?ll take this to be a true statement.) For varied reasons, many persons who haven?t yet reached the age of 30 choose not to save for their impending retirement ? at their own peril.

The second response is the equivalent of the girl in that horror movie who closes her eyes as tightly as possible while her soon-to-be murderer takes those slow steps toward her, knife in hand. ?Does it really buy her peace of mind for her remaining few seconds? ?Not really. She just doesn?t have to see the killer coming. ?But in the financial world this side-step buys people false peace of mind, for a while.

For example, I recently sat down with two doctors, happily wed and working at the same hospital, together making approximately $300,000 annually. ?He said ?We?re going to retire in 3 years.? ?I performed an in-depth analysis for them, and had to tell this couple that despite the years they?ve spent at their jobs and their desire to finally be able to just sit back and rest, there was no way short of a windfall of cash that they would be able to retire within 3 years.

They were fine up until then ? they were happy and really didn?t have worries about retirement. ?They were able to ?close their eyes? for a short while. ?Their intent to retire, however, would force them to drastically change their lifestyle, likely sell their home of 30 years, and cut back on everything, including what they had once assumed they had available to assist with funding a college education for their grandchildren. ?All this effort, even if they did it for another 5 or 7 years (health permitting) would allow them to consider retiring, although not at the lifestyle they had assumed they would have.

You cannot neglect your financial status ? for your own sake and for your family?s sake. Taking responsibility for your own financial situation, taking control of your retirement, directing your own path is not an option which people have. ?It is something that one simply must do. ?There are no other viable options.

I am not going to knock on your door one day and tell you that I?m going to set your affairs in order for you so you won?t have to worry about it. ?No one will. You must do it yourself.

I know the prospect of preparing for retirement is daunting. ?Everywhere one looks, highly-compensated marketing departments of the world?s investment managers, broker-dealers, and investment?advisers?are coming out with campaigns aimed at you to get you to trust them above the others. They argue that their?advisers?truly care, that there is hope for financial?safety and that you will find this safety in following them.

But after experiencing these last two bear markets, when hopeful retirees saw dips of 30-50% or more in their retirement savings EACH time, you are likely inclined to think that it is hopeless. ?You figure they are all the same, out to make money for themselves, and you can do just as well by blindly selecting some funds from the options available in your 401(k), 403(b), or 457 plan, watching your spending, and hoping for the best.

But this cynicism is unwarranted. You would expect a mechanic who spends 8 hours each day fixing cars to become proficient at his craft ? which is why your bring him your car when it breaks. You go to your doctor when you don?t feel well because you trust that his experience spent practicing his profession has given him an aptitude which you cannot match, even with the encyclopedic knowledge of WebMD at your fingertips.

Why is planning for your retirement any different? ?Why is investment management and retirement planning something that anyone can do after talking it over with several friends (in various fields, none financial) and perusing some ?investing/planning made easy? websites? ?Investment is not magically different from other fields. In the investment world of today, it is more important than ever that you are choose to be advised by a competent professional who is well-versed in the jargon and concepts of the field.

Don?t ignore planning for retirement. ?If you are tempted to, just imagine yourself speaking to your future self at 65, telling yourself ?I do not value you highly enough to prepare for your needs and wants that you will have at this time in your life. You are on your own.? ?It is difficult to imagine anyone saying this to another person, but that is exactly what people say to?themselves?and their families when they do not take the steps necessary to properly prepare for their later years in life.

In my next post, I will be sharing with you some information which will help you find that trustworthy, competent financial professional who is worthy of your trust in his ability to help you provide for yourself and your loved ones not only now, but for many years to come.

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-Doc Finance

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Doc Finance is an Investment Advisor Representative with one of the largest Broker/Dealers in the United States. His focus is on bringing Wall Street knowledge and retirement-planning techniques to Main Street, for Middle and Low Income Families.

Source: http://newagora.me/2012/10/21/do-you-really-need-financial-advice/

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