An old boss used to tell me “perception is reality”. I hate that.
Even worse, in showing his true (lack of) character, most times the next thing said was “a lie stuck to is as good as the truth.” I’m not making this up. He meant it tongue-in-cheek funny, but after hearing those phrases numerous times, it was obvious they were internalized inside him.
Let’s take those thoughts into the money world…
Ask anyone for an estimate of their future financial needs and the number you get is usually underestimated. Is their perception a reality? Is the lie they’re sticking to as good as the truth? Emphatically – no.
Want some evidence?
Check out “Retirement Reality: 8 Charts You Need to See” from Retirement Cheat Sheet
Once you combine most people’s:
- Real savings rate
- Rising life expectancy
- Saving’s lifespan
- Spending habits
- Potential nursing home expense
- Potential for additional Social Security changes
- Investing rate of return &
- Market timing
Things can get crazy in a hurry.
So what should they do? What can you help them do? Let me suggest something very simple:
- Recognize if they have an issue
- Internalize the importance of taking action and addressing it
- Trust a knowledgeable and experienced financial professional (know anyone like that?) who can put together a personalized, tailored strategy
These issues aren’t going anywhere. Help people recognize that and take action. That’s what you’re best at.