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Your Financial Future Is Up To You!

17 April 2008 One Comment

If you’re like me, you’re in your 20’s. You are in the early stages of your career. You are attempting to do the right things financially to both enable a bright future full of prosperity as well as being able to do the things you enjoy doing now.

Where are we to turn for sound financial advice? Being in your 20s, you probably do not have that high of a net worth and neither do I. Financial planners? You’re not worth their time. They are focused on landing clients with more money to manage. The majority of them aren’t worth their fees anyways.

How about the internet? The stock market websites, the retirement planning guides, and the financial how-to’s all say the same thing. Let’s see if you’ve heard this before: You need to max out your 401(k), diversify, and let compounding interest take effect because time is on your side.

The harsh reality is that most people currently in their 20s will not have enough accumulated wealth to sustain their lifestyle when they retire. Some estimates say people in their 20s need to sock away at least 10-15% of their income each year to have enough money by the time they’re ready to retire. Most people in their 20s are not saving this much money, but even if you were it doesn’t factor in any of the following risks.

Our short-sighted government’s policy is essentially economic growth at any cost. One of the major costs is the destruction of our currency. What does this mean for you? It means that the 10% you save each year is losing at least 3% in purchasing power due to inflation. Basically, the money you accumulate is worth less and less each year.

An additional risk is assuming high future returns on your money. Many financial “experts” assume too high stock market returns. Assuming 8-10% return each year is both an overestimation and does not factor in capital gains taxes and other fees.

Other risks include the potential for higher taxes and the possibility for lower future P/E levels. The bottom line is that for most young Americans, the math simply does not work out for the generally accepted strategy for retirement savings. And don’t even try banking on Social Security, it won’t be around in 40 years.

Your financial future is up to you. It is up to you to become educated and take appropriate action. The good news in all of this is that there are ways to secure your financial future, there are ways to beat the market when most “experts” fail to do so, there are ways to achieve higher levels of financial prosperity in your life.

Your first step is to find a financial resource geared towards you. 20smoney.com is that resource. We will address every risk listed in this posting and more. We will provide investment strategies and suggestions to assist you in your way towards planning for your future. Stay tuned.

One Comment »

  • Daniel said:

    I’m excited about your site Kevin! Thanks for doing this and I’ll be keeping up to date with your writings!