Do you worry about your finances? You are not alone!
A recent survey by Capital One found that many Americans worry about their financial situation. Here are a few of the survey’s findings:
· 77% of Americans report feeling anxious about their finances.
· 68% worry that they do not have enough money to retire.
· A whopping 25% of respondents say that financial stress impacts their relationships with others!
Difficulty sleeping?
Not surprising, the results of the survey indicated that many (about 40%) said that they have difficulty sleeping as a result of their money fears.
It is no wonder that when it comes to investing and accumulating assets for long-term financial goals, that investors feel powerless. After all, some of the economic and political uncertainty we are currently experiencing feels unprecedented. The thought of investing for the future when there is so much uncertainty can be daunting.
For some, this feeling of powerlessness can create a serious obstacle to making financial progress. How can investors overcome their fear and powerlessness in order to take actions that will propel them forward to achieve their financial goals?
Having a financial plan helps alleviate worry!
Over the years working with worried clients it has become obvious that going through the financial planning process and reviewing existing plans in the context of a changing financial environment helps alleviate worries.
Why does having a financial plan bring peace of mind to investors? In our experience, here are a few of the benefits that can be derived through the financial planning process:
1) A financial plan provides a realistic assessment of where you stand. Are you on track? Do you need to save more? Are you saving to the most appropriate type of accounts? Is your portfolio appropriate given your return requirements and risk tolerance?
2) A financial plan addresses the possibility of financial hardships. Do you have adequate emergency savings? What happens if inflation is high and/or investment returns are low during your retirement period? Can you financially sustain a change of employment? Can you afford to self-insure against long term care costs or should you consider long term care insurance?
3) A financial plan helps to identify opportunities. Is a Roth conversion appropriate? Should you pay more toward your mortgage or consider refinancing? Should you adjust the investment mix of your portfolio? Are there opportunities to reduce your current or future tax burden?
Confidence, Peace of Mind & Empowerment
We have found that going through the financial planning process provides an element of certainty and an idea of what can reasonably be expected in the future. Identifying best case and worst case scenarios and developing a game plan of how to mitigate risks, generally provides confidence, peace of mind and a sense of empowerment to those who go through this process.
Do you need a financial plan update or refresh?
If you are feeling worried or anxious about what the future holds for you financially, please know that Beacon is here to help!
Please do not hesitate to reach out to us if you have any questions, or would like to discuss alternatives that can help you confidently confront an uncertain future.