Mini-Blog

When you go to a car dealership you expect to be sold a car, right? In fact, they’re called salespeople. You both know the relationship of the other so you know what to expect. No problem.

Similarly, if you go see a financial advisor you expect to get advice. But, how do you know if that advisor is truly providing advice for you or really just trying to sell you something, such as life insurance or an annuity?

Albert Einstein often receives credit for claiming compound interest as the most powerful force in the universe and the 8th wonder of the world. Whether he actually said that or not, the beauty of your money building on itself over long periods is still really, really cool. Below is an illustration of how much you need to save each month in order to accumulate $1 Million by age 65.

The majority of people not receiving financial advice have “inappropriate risk levels” in their workplace retirement plans, according to a study by Financial Engines and AON Hewitt. Their study analyzed fourteen 401(k)/403(b) plans representing over 723,000 individual participants with over $55 Billion in collective retirement assets over a seven- year period.

The best-selling personal finance author, Suze Orman, recently said, “I wouldn’t buy a cup of coffee anywhere, ever, because I would not insult myself by wasting money that way. You need to think about it as: You are peeing $1 million down the drain.” She goes on to say that coffee is a want, not a need. The barely noticed personal finance blogger and Certified Financial Planner™, Steve Byars, responded, “Horse Feathers!”