Lehigh Valley Woman – Finance Section – June/July 2012
by Laurie A. Siebert, CPA, CFP®, AEP® Vice President, Valley National Financial Advisors
First, I want to ask you to read this entire article. If you are sitting in an appointment, take this publication with you. It’s free.
Now that we have that settled, please be patient as I set the stage for the message I want to share. I recently attended the Financial Planning Association (FPA) Philadelphia area annual symposium. Philadelphia FPA does an amazing job of putting together a slate of talented speakers with the most interesting information. They share their passion and insights on wellness, financial independence, financial education, and more.
One of the first speakers spoke about the economy and demonstrated how we need to learn to really listen to what is being said by those who communicate the ideas, facts and figures, and not what is being interpreted. Think about that. We have to be careful how we listen to information.
The next speaker, Dan Millman, author of several self-help books, says, “We see the world as we are.” As humans we have difficulty being objective. Our own biases and experiences affect how we feel and how we interpret information. How do we process information? We gather it through experience, observation and data gathering. How do we overcome this hurdle? Dan suggested that “everything is difficult until it’s easy.”
An attorney spoke about pending estate tax legislation and the urgency for high net worth individuals to explore or take advantage of gifting away large assets to avoid possible estate taxes. He added that many wealthy individuals do not want to let go of their millions because they may need them! Why would they feel this way? Nick Murray, a financial advisor, spoke at length about over-thinking our retirement income planning. He emphasized the importance of understanding the message that our parents and grandparents passed down to us. The most important people in our lives shape our attitudes in such a way that they become part of our subconscious. Let’s put this all together in what I am going to refer to as self-talk. Dan Millman said it’s not, “Can I do it?” but “How can I do it?” Nick Murray mentioned “Investing in the stock market” or “Investing in the great companies of the U.S. and world.” I was fascinated at the difference I felt when I heard these options. What do you feel when you read those statements? If we can stop ourselves from defaulting to our biases to ponder an alternative way of viewing what comes before us, might we open ourselves to more experiences that prove there might be a different way to make decisions? This may be the opportunity to change our trajectory. How can we apply this in our financial life? Nick Murray demanded that we take care of “his” people. Those people being the millions born between 1946-1955. Those same people born to the children of the depression. Those same people who cannot imagine gifting away their money because they may lose it and taught their children the same mantra! Half of those same people will live on ONLY Social Security benefits for the rest of their lives which could be for another 30 years! Yes! Life expectancies keep getting longer! If you hear yourself, your spouse, child, partner, or parent saying over and over that they are afraid to lose money, they want to preserve principal, they want guaranteed income or to take Social Security while they can get it, ask them to stop the limiting self-talk. Ask them to revisit the conversations they overheard as a child. Ask them if they considered another way of looking at their financial life, a more empowering and proactive way of making decisions. How can I make my money last through my life expectancy? How can I supplement my Social Security? How can I maximize my Social Security? The average Social Security benefit is just over $14,000 this year. Assuming a 2% cost of living adjustment to that and in 30 years you will be paid just over $25,000. Peoplehistory. com says that 30 years ago a stamp cost 20 cents and a gallon of gas cost approximately $1. Today a stamp costs 45 cents and a gallon of gas almost $4. Do the math. Think differently. In summary Be proactive, not reactive, and feel free to contact me for help, 610-868-9000. Your Financial Choices
