6 Skills you have to master in order to be wealthy

There are six skills that every future millionaire must master. These six skills will put you in the millionaire mindset and prepare you to stay in that mindset throughout your life. When you build on the six skills; persuasion, reading people. Sharing the wealth, leverage, problem-solving and saying no, you set a foundation for the life that you want to have. They are skills that you have to hone and work on every day of your life and when you make them a priority, you will begin to master them.

Persuasion

Persuasion is the ability to convince someone to see things in the way that you want them to. You have to be able to persuade your family to support you when you start a business. You have to have the ability to persuade investors to invest in you and employees to work for you. You also have to be able to persuade yourself, that you can accomplish what you set out to do. You have to be able to persuade yourself to keep moving forward. Persuading is not a perversion of the truth, it is a form of selling. Therefore, if you are a good salesperson, you will be good at maintaining the skill of persuasion.

Reading People

Reading people is a very important skill. You need to be able to have good instincts about people and knowing who you can trust. You have to be able to know how to read your investors, your customers, and even your family. You need to be able to read the signals to know what your investors need to feel assured in their investment. You need to be preemptive about understanding your customer’s needs and being able to read your customers is a good way to give them what they want before they even have to ask for it. Behind ahead of the game is a great way to make sure that you never fall behind.

Share the Wealth

You cannot be greedy when it comes to building your wealth. Sharing your wealth is a very important skill to maintain throughout your life. Ways that you can use this skill include; hosting charity events, gift cards, letting people test your product for free. You have to be willing to put some of the work in for free. You need to be willing to give things away in your business in order to help you build a reputation and referral source from clients.

Leverage

Leverage is an important skill to hone. You have to be able to leverage people to see how they can benefit you in the most productive way. You have to be willing to leverage your contacts, your friends and even your family. Leverage is more than just about how they can help you, but also how you can help them. You cannot leverage on only one side of the playing field. You have to be willing to give as much as you get.

Problem Solving

You have to be able to solve problems rationally. You cannot let problems distract you from your end goal. You have to learn to calmly handle these problems as they come up. If you cannot learn to handle problems quietly and calmly, then over time they will start to have an effect on your business. This is why you have to be consistent with how you solve the problems and when possible, keep them at an arm’s length.

Saying No

You have to be willing to say “no” more than you say “yes.” There is a guilt that can sometimes come up when we say no to things. You have to remember that your time is valuable and you need to give your time to the things that are consistently making you money. This is why it is an important skill to know when to say no and stick to that as your answer.

Conclusion

These are six skills that all millionaires maintain. These skills are important to work on and hone over the years because they will make you more successful and better respected in your life. They work hand in hand to help you build your life without anything getting in your way. This is how you begin to set a foundation for the life that you want to have.

For more articles like this click here to access my weekly blogs.

Until Next Time,

Ken

Reasons A Student Fails in Business and C Students have a Better Chance

Most people are prone to commonly believe that students who do well in school,
as in they get the highest grades will be more apt to work harder but this is not usually
the case for many reasons. Surprisingly, students who have more of an average grade
history are projected to do better in the business world. There are many different
considerations that most people do not realize when it comes to seeing the differences
between these two groups of individuals. These differences include things such as work
ethic and their basic attitude structure.

The talk verses the walk

This is a huge difference that you can vividly see between these two groups of
individuals. Most students that are the top of their class are big when it comes to talking
about all of the things that they are able to do. They always believe that they are the
smartest person in the room and often because of this mentality when it comes to
business, they often fall into the habit of promising things they are not able to fully
deliver on. Students on the other end of the equation, who may have done averagely in
school understand the benefits long term of under promising and over delivering. They
know that if you are stuck in the mindset that you are the smartest person in the room
that you will put yourself in a position where you have no one to learn from and nothing
to gain.

Me Mentality

Students that got the highest grades in school were the best of the best and
rarely team players. They fought hard to individually be the best at everything that they
set their mind too including grades and sports as well. They rarely have to work with
others to figure out how to solve problems because they feel the need to rush ahead
themselves and solve it in order to acquire the praise from their parents and teachers.
Students who received average grades in their formative years knew exactly how to
work with others to even out the workload as much as they possibly could. They had a
game plan to work smarter and not harder. They did homework together, studied
together and worked in packs to get everything passed in their classes. This set of
students obviously translated better into teams when they went into the business world
than those that only worked by themselves.

Credit Vs Blame

The individuals who are still riding the high of a 4.0 GPA and the praise from
high school and even college are seldom the first ones, if ever at all, to take the blame.
They have less experience in having to answer for doing something that did not meet
the highest of standards. They are the first ones to take credit when something goes
right but the last one to stand up and take responsibility when something tends to go
wrong. Average students are more prone to know how to properly take responsibility
when something was not done correctly. They take the blame when it is warranted.

Taking the High Road

It is a key quality for a business owner or anyone working in business for that
matter to be able to take the high road. You can see a clear difference between those
who know how to do this and those that do not. One of the places that this is clearly
seen is how they respond to negative reviews. Taking the high road is knowing how to
stay in your lane and focus on your growth while ignoring any negative commentary in
the other lane.

Conclusion

It may seem easy to believe that by praising the students who do well in school
that we are doing them a favor when in reality, it is not preparing them for the real world.
You can not take a prideful path when it comes to being in the business world. You
need to know how to work as a team, take the blame when necessary and work for the
better of the entire group rather than just themselves. You can not expect to simply be
an alpha and be diligent enough to get everything done on your own. In the end, a pack
mentality will be much more of a benefit in the long run.

How to Prevent Fires as a Landlord

Being a landlord is a large responsibility and you must be prepared for everything
that can possibly come up. Still, there are some things that you simply cannot prepare
for specifically but you can work diligently to prevent them. An example of this is
knowing how to prevent fires when you are a landlord. Remember, it is important to be
prepared even for the things we never expect to come up. One of our own properties
had a fire recently. The fire was contained and no one was hurt. This is why it is
important to be prepared and know how to properly react.

Ways to Prepare

There are many things that you can do as a landlord to prepare for fires. One of
the main ways is to make sure that you are complying with local fire codes in the area in
which your property is located. There are ordinances and local fire codes that you can
read through that will help you stay legally protected while also keeping your tenants
safe. If you do not feel comfortable walking through the property on your own, you can
have a local fire inspector come do a walkthrough.

Talk to your Tenants

There are also things to discuss with your tenants when it comes to fire safety for
your property. You need to set strict house rules for all of your tenants, put them in
writing and have them verbally explained to the tenant as well. You also want to be sure
that you are constantly checking the smoke detectors in each property unit. You can
also add carbon monoxide detectors to your properties to help detect when too much
CO is detected in the home.

Plans and Rules to Establish

One of the most obvious but sometimes forgotten things to consider is to have a
fire extinguisher on each floor of the property. Fire extinguishers may not be able to take
down larger fires but can be easily used to contain small flames in controlled
environments. It is also important to have a strict, “no smoking” policy. You need to
make sure to enforce this policy in and out of the house. You also need to be sure to
follow up on any suspicious activity to show your tenants that you are serious about this
policy. Another thing you do directly for the unit itself is to establish grilling rules or ban
the use of grills all together. If you are going to allow grills, then you need to make sure
that they are being used properly. Your tenants need to know how to check propane
tanks for leaks and keep the grill a minimum of ten feet away from the unit at all times. It
should never be allowed under any circumstances to have a grill on a small patio or
under any type of overhang.

Protect in Case of Emergency

You can do everything that you need to do to prevent these scenarios and still
find yourself running into them. This is why you need to make sure that you are covered
if an incident does occur. It is important to have a clearly understood escape plan,
especially if you have a multifamily unit. You also want to be sure to review this escape
plan with your tenants so that they are sure to understand what to do and where to go in
case of a fire. You should also require your tenants to have renter’s insurance. These
policies ensure that the tenants can recover their personal items in the case of an
emergency occurring. You want to make sure that your tenants feel comfortable
reporting any issues to you that may lead to emergencies down the road. Also, when an
emergency does occur be sure to document everything that you have done to help
prevent the incident. For example, if the fire was caused by a lit cigarette and you have
a no smoking policy that has been provided to the tenant, be sure to keep those
documents.

Conclusion

As landlords, you can not expect to be ready for every single incident that may
happen. When you are on top of preventative measures you can feel rest assured that
when an emergency does occur, you and your tenant are both ready to take it on. By
clearly communicating your expectations with your tenant, executing a safety plan and
are willing to hear your tenants concerns when they arise you are creating a safe
environment that is prepared for any disaster that may occur. Stay calm, stay prepared,
stay diligent and stay documented.

Options for Individuals Impacted by Covid-19

Join Ken McElroy and Eric Freeman from BeachFleischman as the talk through some options for individuals that have been impacted by Covid-19.

You can learn more about Eric at his firm’s website at https://BeachFleischman.com

You can also download a useful resource created by Ken to help work through your financial stress test. You can find the resource at: https://www.kenmcelroy.com/stresstest/

Episode Transcript:

Eric Freeman (00:00):
Thank you. Happy to be back and get more information out there.

Ken McElroy (00:03):
Yeah, there’s a lot of confusion right now. And so as you guys know, Eric’s a CPA. He has his master’s in accounting, uh, his firm Beach Fleischman does our tax returns. Most of them. We have what over a hundred. I think that you do right? Or keep us busy. Yeah. Yeah. So our firm, uh, we do, we do about a hundred tax returns with all our different real estate deals and our land deals and all that kind of stuff. And we meet with them quarterly. And by the way, if you guys don’t do this, you really should we meet with Eric face to face? Well, maybe not now, but quarterly. And we go over a tax planning and it’s a, you know, it’s a, it’s a very important day. We make a lot of tax moves that, um, um, but honestly, I, you know, I would never know about, you know, an Eric spends his time, you know, educating his clients and, and, and making those moves. But for today, Eric, what I wanted to talk about was this big confusion. You know, over rent or mortgages and like do do people need to pay their rent and their mortgages because you know, as you know, we have 7,000 residents and they, you know, living in an all our apartments and I’ve been talking to all my friends, you know that on commercial and they will, they will offer see on retail they are industrial and, and there’s all this confusion on the mortgage side and on the red side. Right,

Eric Freeman (01:26):
right. Yeah, it’s a great, it’s a great question because there’s so much misinformation potentially going on out there. So first it’s important to understand that a lot of what’s coming out as far as the rent and mortgages, the purpose is to assist people that can’t otherwise make their payments because of a Covid-19 issue. Whether it was that you’ve actually been tested positive for Covid-19 or you’ve been told to self quarantine because of being in contact with someone with Covid-19 or maybe you’ve lost your job or you’ve received reduced hours because of the business that you work for. Maybe it’s a restaurant or another retail type business that can’t operate right now due to, um, the various government restrictions going on. So that’s the purpose of these various mortgage and, um, rent forbearances. So the purpose is not to just like blanketly not pay because ultimately at the end of the day, we have to keep as much of the economy going as possible. Um, so first, you know, I’ll touch on the, the rent, that’s a big one. Um, rent, if you’ve been affected, the governor came out with an executive order, I believe it was last week, um, for residential, um, tenants that if you’re affected by coven 19, then you can request from your landlord, uh, a rent forbearance. And that mean that you’ve never pay the rent. It means that you can put off and defer that rent payment to give you enough time to get on your feet.

Ken McElroy (03:09):
And that’s, that’s just an Arizona, by the way. I mean, I know that some of these, it’s confusing because there’s different things happening in each state, right?

Eric Freeman (03:17):
Yes, exactly. And they’re all kind of happening. Um, it’s changing daily. And so even within our state, something may come out one day and then the next day it completely changes. As, for example, the list of essential businesses. We had a list originally and then, and then it came out and now we’ve, we’re closing the hair salon and then everything else. So it’s hard to keep up with everything that’s going on. But in general, if you’re still working, you’re still getting an income, you’re able to work from home. Um, then these, those types of rent, forbearance and, and the mortgage is not meant to apply to those types of situations.

Ken McElroy (03:56):
What’s interesting is we just had it, you know, every, every Tuesday, which is today, we have an hour and a half meeting with our whole leadership team. And, um, our COO, you know, is basically reporting on a daily basis, you know, April 1st rent collection. You know, cause we honestly, we were like, Oh, we don’t know and this all kinda hit everyone in March. We’re thinking, okay, well, March is paid, but you know, we don’t know is, you know, who’s going to pay in April? And, and the misinformation out there that we’re hearing at the property level is high. You know, some people are basically saying, well, I just heard that I don’t have to pay it off. You know, that’s their position. Right,

Eric Freeman (04:33):
right. Yeah, it’s very difficult. And I think as we progress, I mean, April 1st was scary, but May 1st is probably going to be [inaudible].

Ken McElroy (04:45):
Yeah. That’s actually what we’re mostly concerned with. What’s interesting, I’ll just give you a number. We collected 85% already and it’s April 6th today. And um, you know, rents were due between the first and the third. And, and so we felt very good about that. You know, we have some properties that are very delinquent and some that are, it’s in fact, Ross was telling me today though, our all our senior properties, you know, we have no delinquency. And I said, well, why do you think that is? He goes, well, the casinos are closed. And I don’t know if that’s the case or not, but, you know, it was an interesting spin on it. But, um, you know, it’s, it doesn’t, it’s obviously this is a national issue. This is an issue that affects a lot of people. And so it doesn’t really matter, you know, how much you make or where you worked or anything like that.

Ken McElroy (05:35):
A lot of this is it’s affecting everyone. And, and so the, from a landlord standpoint, you know, we have a, um, a plan that all people do gotta do is sit down and talk to us and then we work with them on a, you know, on a, on a payment plan. A lot of people have been doing that. Um, but very, very few have come in and say, Oh, we don’t have to pay it all. You know. So it has been a massive education process. You know, just on the rent collection side, you know, they’re the, you know, they are in a lease and, you know, they do all the money. Uh, we’re just trying to help do our part, you know, on letting them live there, um, at a much, much reduced rent and, and, um, and not have to displace anybody from their homes. You know what I mean?

Eric Freeman (06:19):
Yeah. I mean, I think, I think that’s a good message because ultimately I think we all essentially have to work together because if, if you’re not able to collect rent, I mean, those rents go to pay expenses that you’re obligated to as well. I mean, you’re, you’re on the hook to a bank. You’ve got utilities that are going to get paid so that, you know, they still have water and electricity and everything like that. And, um, and yeah, you may have some options to, to try and get a little relief from the bank just like they do, but at the end of the day, you’re still on the hook. Um, even if you don’t make that payment this month, you’re going to have to pay it next month.

Ken McElroy (06:56):
Well, we’ll, we’ll get, we’ll get to mortgages in a minute. I, you know, cause to me that’s like, that’s exactly where my head is, right? If I don’t care, I don’t collect the money from the residents that live in our properties. I’m certainly not gonna be able to make the mortgage, but before we go there, uh, you know, it’s interesting. I, I have a lot of friends in commercial real estate. I have friends that own office buildings and actually I’m, I’m an investor in that building and, and um, you know, uh, self storage and you know, some retail retail, retail’s getting clobbered. You know, I, I’ve got friends, you know, there’s a massive, there’s a big, big firm in Arizona and I won’t mention the name and they own 25 shopping centers and they’re collections our 10%, they have 90% delinquency. Do you think about that?

Ken McElroy (07:47):
Okay, well, right, so again, and I talked to a friend of mine yesterday, he’s, he owns a place in Mesa and Arizona and he’s got 14 tenants. And I said, how you doing? He’s like to have paid. And, and I said, who, you know, who, what ones haven’t? And he said, well, I bridal shop, there’s no weddings. You know, they haven’t paid, you know, a dentist they haven’t paid, they’re not, you know, working on antibody, the restaurant’s closed and you know, you just went through this whole list. And I mean, I was like, wow, like of course, you know, they’re, they’re not gonna be able to pay rent. You know, they’re not, they don’t have any customers. And so what I want people to know is that this red payment stuff, it’s, you know, what’s getting a lot of focus is this residential piece. But really the big, big issue is going to be on the retail and commercial. You guys have no idea. You know, those, there’s not the money to come in to pay for April, may and June rent. Um, you know, they don’t have it. And so they’re not going to, we’ll pay these mortgages and they sold the EAs lot of real estate, commercial real estate, I think. And potentially apartments are gonna eventually moved their way back to the lenders if we don’t get some kind of protection.

Eric Freeman (08:59):
Yeah, I, and all of those instances aren’t uncommon. All the, all the commercial clients that I’ve dealt with are in the same position where, um, tenants aren’t paying. And, and a lot of it’s the uncertainty, um, because we just don’t know how long all of these one government restrictions and everything else are going to last and when they’re gonna be able to open. So, um, in order to, to conserve cash, they’re not paying, I mean, you stop big companies like cheesecake factory came out with publicly that they’re not gonna pay rent on anything. And so that’s just kind of the state of the economy. And as people continue to be out of work as a result of these businesses not operating. Yeah. That’s going to trickle into residential right after. Um, probably a little, a little bit of a delay, but I mean we’re, we’re going to be at a point where we’re collections are definitely going to take a hit more so than they are for April.

Ken McElroy (09:54):
Oh yeah, for sure. I mean, I’m, you know, if, if you own a center that has cheese cake factor in it and they’re a big tenant and a big payer, and I’m sure they are, you know, we’re just fine before this. And, and, um, you rely on them, you know, [inaudible] these are longterm leases. The interesting thing on the, um, you know, what’s going to happen is what’s already happening is

Ken McElroy (10:17):
everybody’s going to pull these agreements out. You know, they’re going to be pulling these lease agreements out, they’re going to pull the rental agreements out. And, and though the banks are going to be pulling these loan agreements out, and the lawyers, they’re going to have a heyday on this because, uh, you know, the money is not coming in. I mean, if, if somebody is not getting paid, you know, as an employee, you know, they’re not going to go to cheesecake factory and eat and then they’re, you know what I mean? It just trickles all the way up to the person who owns the actual shopping center and then they can’t pay the bank. And so, you know, this rent thing, you know, it’s, uh, it’s, it’s unfortunate. I mean, you know, these, there’s a lot of people that are hurting right now and I get it. I, I, you know, but if, if these are, these agreements are going to come out and these personal guarantees and all these things and collections are going to be an issue for people and, you know, credit scores and all that stuff is going to be, um, tested here, you know?

Eric Freeman (11:12):
Yeah. And a lot of these agreements, um, loan agreements, I mean, there’s requirements for certain occupancy and, and rent collections and all that. And pretty much, I mean, a large majority almost all are probably gonna start hitting those. And the times when, when it’s bad is when the banks, and start looking at those now.

Ken McElroy (11:34):
Yeah. Oh, there’s, trust me guys inside of these loan documents, there’s a lot of, lot of detailing. And so for us, our occupancy time, but our collections the same thing. So, so anyways, so that’s on the rent. I think it’s important for people to know that, you know, as you know, there’s, there’s, um, uh, the, the rent is still do, you know, you can’t live somewhere for free and expect it to be free from, you know, somebody and, and so, you know, just do your best to work with the landlords or communicate with them the best that you can. Everybody’s hurting in this, and we’re all in this together. But let’s, let’s jump to the mortgage side because, you know, one of the things that we did as we, we, uh, we got on the phone with, you know, all our, our, all our guys that are hail our mortgages and there, um, they’re basically, you know, there’s all this forbearance word being thrown around, you know, and I know you’re going to talk a little bit about it, but, you know, we got on the phone with them and they said, listen, you have to prove, you know, that you’ve been affected.

Ken McElroy (12:36):
And you know, this is like two weeks ago, well, we didn’t even know when April rents were going to be. Right. And so now we kinda know, you know, um, you know, what’s happening, but we don’t know what’s going to happen in may or June. And so this, you know, this forbearance issue is, is yeah, it’s for us. We, there’s no money available because they’re like, well, you know, you have to show that you can’t pay, you can’t pay. Right. And, and, and so basically we’ve just kind of shelved it for now as we kind of navigate everything. What are you seeing on the mortgage side with some of your clients?

Eric Freeman (13:11):
I’m, I’m seeing exactly what you just mentioned. Um, both on the residential, well on the, on the commercial side for sure. I mean, people are getting the same message from their bank saying, yeah, you, you received the March rent, which is meant to cover your April 1st payment. So we’re not going to do anything at this point. We’ll check in later. Uh, and see if you’re affected. On the residential side, there was part of the, the cares act where, um, for residential mortgages that are federally backed, that you’re supposed to be able to request from your bank 90 days. Um, for Barron’s, um, being the word that they’re using. Um, but what people don’t realize is that at the end of 90 days, banks have the option to either have you pay in a lump sum. Those not 90 days worth of payments plus the payment that’s due at that time or some of them may spread it out.

Eric Freeman (14:13):
But what I’m hearing from people that are actually reaching out to their banks as most are asking for a lump sum at the end of the 90 days. Oh wow. So, um, that makes it pretty difficult because if you’re, if you’re out of a job or something else and you, you don’t have any income for these 90 days, we’ll hire, how are you going to have, have four months worth of payments, um, request an additional 90, um, at the end of that period. But again, it’s all the banks still going to expect it to be repaid. And, um, at this point I think it’s a little unsure whether what kind of late and things they would charge. I mean, hopefully, hopefully they’d be a little easy on it. But, um, really it’s up to the banks as far as the late fees. I don’t believe there’s any requirement, um, for those to get waived. Um, and things like that. And credit reporting, I mean, yeah, I mean things are likely still going to be reported to, to the credit agencies,

Ken McElroy (15:12):
right? Right. So if you got a two or $3,000 mortgage a month and you kick it down the road, you’re, you’re looking at, you know, eight or you know, call it eight to $12,000 lump sum that you’re going to Ole at some point in the, you know, who knows when you’re going to get your job back. And you know, obviously if you’re going there to get forbearance now, uh, that’s interesting. I don’t think I knew that. So, so the banks really have a hammer on, on the landlord. They’re on the homeowner. I mean, you know, they’re just basically going to say, Hey, sorry, you will oldest in a lump sum. That could happen. Right,

Eric Freeman (15:47):
right. I mean, that’s, that’s what it is right now. And even more difficult than that is the volume that they’re dealing with right now. Um, my understanding is it’s pretty difficult to get them demon, get someone on the phone to get this going in the first place. Um, you’re talking about hours to get in touch with them and then, and then you’re finding out the have to make the payments anyway, which I mean, in a way makes sense. I mean, you’re, you’re not just forgiven, um, these amounts, but you know, and things are changing daily at this point. So whether, whether there’s some other kind of assistance that may come out, should this continue to last for another few months? Um, it’s possible. I certainly wouldn’t expect it at this point. Um, but you know, it’s possible.

Ken McElroy (16:34):
Yeah. So I’ll tell you what Eric, thank you by the way. Yeah. The, the, on the commercial mortgage side, it’s super confusing and you know, they’re throwing it on the back end of our, of the loan. But, um, you know, it’s, again, it’s still do it. It’s not, uh, it’s not forgiven. Like, you know, kinda like we were talking on the rent side. So, you know, as things change, you know, what we should do, Eric, is we should jump back on here and just keep communicating to everybody as, as these laws change. So maybe, uh, maybe in a couple of weeks we can jump back on and kind of update this cause as you said, every single day, like just yesterday, uh, we had a new executive order that covered commercial, you know, and, um, you know, that that wasn’t included in there in the original one. So every day new stuff comes out in every state and, uh, maybe, um, maybe we can communicate this a little bit more to help people navigate through it.

Eric Freeman (17:28):
Yeah, I think that would be a great idea.

Ken McElroy (17:30):
Right. Great. Well thanks. This was a great topic, Eric. I know we got two more topics guys. We’re going to talk about, you know, if you’re an employee, you know, what are your options and the other one is a, if you own a business, what are your options? So, uh, stay tuned. Eric, thank you so much. As always. I appreciate it. Thank you. Stay safe. Yep.

Do you need to pay your rent or mortgage payment?

Join Ken McElroy as he talks with CPA and tax advisor Eric Freeman about the impact that Covid-19 is having on real estate. Eric is a Tax Senior Manager for BeachFleischman PC and has been with the firm for 7 years. Eric has a Master of Accounting with a focus in tax. He has spent most of his career focusing on real estate transactions and partnership taxation. Eric has consulted on many complex transactions including multi-asset exchanges, mergers, consolidations, buy-outs, cost segregation studies and transaction formation. He also has a wide variety of experience with international issues as they relate to real estate, including both inbound and outbound transactions.

You can reach Eric through his firms website at www.BeachFeishman.com and look for the leadership team.

Real estate strategies heading into a downturn

Join Ken and Robert Helms for the RealEstateGuysRadio.com podcast as they talk about unique defensive strategies that you can use to mitigate the results of the next downturn – or profit from it.

To get a free copy of Ken’s eBook “21 Keys to Real Estate Success” just visit this link: https://7rxyf2er.pages.infusionsoft.net

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ATTN: Baby Boomers

There are three very important things that baby boomers need to pay attention to when it comes to making plans for their retirements. Most individuals in this generation are not actively involved with where their money is. Either they have turned it over to family or a bank, trusting that they will handle it properly or they just do not keep track of their spending at all. Most individuals in this generation are not fully educated on asset retention and do not have a solid plan for their retirement. Understanding the three biggest mistakes that baby boomers make and having the knowledge on how to combat them can help create a more solid plan for retirement before it is too late. 

Turning Your Money Over

Not being active in your finances at all, nonetheless not being active in your investments is always a mistake. It may seem easier to hand your money over to a financial planner and hope for the best but this will not be fruitful in the long run. When you entrust a financial planner to handle all of your assets and investments, all the information you are given overtime is in projections that they give you in their reports. More often than not, these projections are not in layman’s terms and hard for the average person to understand completely. If you do not understand something, you cannot verify it. This opens the door to be easily tricked or lied to without the knowledge to know when it is happening. This is why it is important to be vigilant with what is happening to your money. 

Assets

Assets are an important part of planning for retirement. There are different types of assets that someone can have. If you buy depreciating assets instead of appreciating assets, you are hurting yourself in the long run. In the hunt to try to “keep up with the Jones’” you are hurting yourself more than you think. It may be nice at the time to live a life that looks valuable to those around you but those things that you spend all of your money on will lose value over time. It is more important to focus on appreciating assets that will build your initial investment in them over time. 

The Reality

Most baby boomers have less than ten thousand dollars in their bank accounts. This is not enough to plan a retirement around, especially if you have a future with foreseeable medical issues. If you do not take the time to be informed of your own investments and the status of your own investments, then you have no one to blame but yourself. You have to take the time to educate yourself on these matters so that you can make the decisions on your own without the opportunity to be taken advantage of.

Conclusion

Retirement is something that you need to plan ahead for. It is not something that can be left till the last minute. It takes planning, knowledge and the right investments and asset retention. When you understand what these common mistakes baby boomers are making for their retirement are, then you can understand how to plan to avoid them. It is less about “keeping up with the Jones’” and more about maintaining your lifestyle for longer without having to worry about depending on anyone else. Be active in your investing, educate yourself on the right assets you should have and retire in a place of comfort and safety.