Hi Patrick here with Retirement Lifestyles advisory group where it’s all about having the health wealth and freedom to live your dream retirement. And today’s quick tip is all about… The number one obstacle to building wealth.
As you start to accumulate and build wealth you’re going to encounter obstacles over time. So here’s a question for you. What do you think is the number one obstacle to building wealth? The answer may surprise you.
Whenever I ask people that question, I always get answers like, the economy, or taxes, a bad stock market or the president! While all of those are obstacles sometimes, the number one obstacle getting in your way to building wealth… is you.
Sorry, sometimes the truth hurts. But without question, procrastination is the most common cause of financial failure. We’re all guilty of it in some fashion or another… oh I’ve got plenty of time, I’ll do that next year. And then one year turns to two and then to ten really quickly.
Let me illustrate with a short story.
Suppose there were two twin siblings, Jack and Jill who both invest in Individual Retirement Accounts earning 8% a year.
Jill, subscribed to my youtube channel, and faithfully listened to my radio show, and at the age of 20 she stuffs three thousand dollars a year into her IRA , and continued for the next ten years until she got married at the age thirty and she never added another penny. For a total investment of thirty thousand dollars.
Jack, just deleted my videos and never downloaded any of my free reports and checklists from the website basically screwing around for ten years. But he finally wised up at age thirty and started socking away three thousand dollars every year for the next thirty five years. His total investments were one hundred and five thousand dollars.
So, who do you think will have more money when they retire at 65 years old? Jack or Jill?
In this case, the early bird will always be ahead. Jill reaches age 65 with more than $642,000, while her brother will have a little under $514,000. Jill has an extra $128,000, even though she only invested for a total of ten years. It was all because of the power of compound interest and the fact that she started ten years earlier.
Of course, it's far better to start early AND keep it adding money. What if Jill had gotten married but kept adding three thousand dollars a year to her IRA until retirement, she would of ended up with nearly one point two million dollars. Twice as much.
So what’s the moral of this story? It’s simple, watch my videos, listen to my radio show and download all my cool stuff and you’ll be good to go..! Wait, rewind that.
So what’s the moral of this story? In order to put the power of compounding interest on your side, don’t wait, start saving today! Even if you start with just ten bucks a month. Make it a habit. Set it up on auto deposit, and then continue to up the amount every month until it starts to hurt. Then, when it no longer hurts…. You guessed it, up the amount some more. Get to a point where you can max out your retirement plans and you’ll be well on your way to a great retirement.
If you have any questions or feel like you want some personal help, let’s have a phone call and talk about your goals. Go ahead and click the link in your email or down in the video description that says “I would like to schedule a call with Patrick” and it will bring up my personal calendar where you can reserve a phone call with me.
There’s no charge for the call and you don’t need to worry about sending me any personal information or account statements.
Be sure to subscribe to my youtube channel Retirement Lifestyles Tv, you can click the little logo button in the lower right hand corner of this video.
You can also check us out on facebook, at retirement lifestyles advisory group, be sure to follow and like our page.
And if you’re lucky enough to live in the north state, be sure you tune in to my radio show Retirement Lifestyles every Saturday morning at 9am on news talk 1057 KQMS.
Thanks for watching today’s quick tip, be sure to click the like button, feel free to share it and post any comments or questions that you have.
And I wish you the best in retirement!
© 2017 McNally Patrick Daniel CRD #154642 is a Registered Investment Advisor in the State of CA, DBA Retirement Lifestyles Advisory Group. Advisory Services provided by Betterment LLC, an SEC Registered Investment Advisor, member FINRA/SIPC. Investments: Not FDIC Insured • No Bank Guarantee • May Lose Value. Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Past performance never guarantees future results.
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This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. Please consult with a professional specializing in these areas regarding the applicability of this information to your situation.