There’s an old joke about a client meeting with his banker to review his finances. “Mr. Smith, I’m afraid your account is overdrawn”, the banker says. “That’s impossible!” the man states. “I still have checks left!”
Unfortunately, for too many people, “spend until it’s gone” has become their only financial strategy. As a result, these people may be facing a bleak financial future. How will they achieve any financial goals, such as having cash on hand for emergencies, preparing for retirement, or leaving something for the next generation?
Prepare for today’s challenges
It’s easy to get used to a high-income lifestyle. You deserve to treat yourself and your family to all the rewards that your hard work brings. However, we all know that good times can’t last forever, especially in today’s challenging economic environment.
That’s why it’s critical to your financial security to learn how to manage your income and assets properly to protect yourself during the “boom” times and prepare for the “bust” times.
Paying yourself first with a savings plan is the best method you can find for starting your own nest egg. It’s best to start as early as you can, making good use of time and compound interest for maximum growth. Keeping track of your spending and minimizing debt is also important – remember that when you charge a purchase, you are committing yourself to pay for it with money you haven’t earned yet.
Making regular contributions to a savings plan, and having a diversified portfolio can help you grow your assets and build wealth. You’ll have cash on hand for any emergencies, as well as a plan for income during your retirement that can give you liquidity for changing needs along with potential for growth.
Prepare for tomorrow’s possibilities
Historically, people have depended on three primary sources for their retirement income; pensions, personal savings, and Social Security. Over the past several decades, however, the picture has changed.
Traditional pension plan coverage has decreased, and retirement funding has gradually moved from an emphasis on employer-paid to employee-contribution pension plans, often limiting the amount employees can contribute on an annual basis.
Individuals like you are now increasingly responsible for funding their own plans, making their own investment choices and taking on the risk that those assets could decline in value during times of market volatility.
And remember that the more you earn, the lower the percentage of your pre-retirement income that is replaced by Social Security.
In this challenging environment, it’s up to you to take control of your plans for retirement. And if you’re like most people, just the thought of it is overwhelming.
Find a trusted advisor
The good news is that you don’t have to develop financial protection and growth strategies on your own.
You can benefit from working with a financial services professional who has knowledge, experience, insight and an active interest in your financial success. A skilled financial services professional can coordinate your financial strategies with your attorney, your accountant, and any other professional advisors with whom you work to help you achieve what is most important to you.
Your financial services professional can help you live better today and be prepared for whatever tomorrow may bring.
Howard Bienenfeld, CLU, ChFC
Financial Services Professional
Bienenfeld, Lasek & Starr, LLC.
Office: (201) 449-0026
Email: [email protected]
Website: www.blsfinancial.com
Provided by Howard Bienenfeld, CLU, ChFC, Partner at Bienenfeld, Lasek & Starr, LLC; courtesy of Massachusetts Mutual Life Insurance Company (MassMutual)
Howard Bienenfeld is a registered representative of and offers securities, investment advisory and financial planning services through of MML Investors Services, LLC. Member SIPC. 1000 Corporate Drive Suite 700, Ft. Lauderdale, FL 33334. 954-689-9484. Bienenfeld, Lasek & Starr, LLC, is not a subsidiary or affiliate of MML Investors Services, LLC. Services, LLC or its affiliated companies.
