by CareyAnn Peterson
“You can blame the corrupt markets, evil hedge funds, or the big bad banks for your financial woes. You can even blame yours truly. Off-loading the blame may feel good at the time but it’s not going to build up your IRA or send your kids to college. Your finances are your responsibility and the best way to protect and grow your money isn’t a hot stock tip; it’s education.” I recently read this in an article on Breakout, a financial blog located on Yahoo.com and I couldn’t agree more.
Why is financial education so important?
When friends, family, or acquaintances find out that I work in finance, I am almost always immediately flooded with a million questions. I have found that many of those who are seriously concerned about their situation want to know all the answers to their personal finance questions, but rarely want to do the research themselves. So why is it important for you to have a basic understanding of finance instead of hiring a professional to make all your financial decisions for you?
While it is important to consult a financial planner to review your comprehensive financial plan, it is just as imperative for you to have a basic understanding of your finances for two very important reasons.
1. You can’t take your financial advisor with you everywhere you go. You are the one that has to manage your day to day finances. You have to decide what kind of car you can afford, manage your living expenses, and still maintain your lifestyle within your budget. This is why it important for you to create financial worksheets for yourself and closely track your spending. While your financial advisor can give you direction on how to invest your money, they cannot create the investable retirement savings for you. It is your responsibility to make sure that you are adequately budgeting so that you can save enough each year for your retirement contributions.
2. A financial advisor might not have your best interest at heart. If you haven’t already, you should check out our special report, 12 Red Flags When Dealing with a Financial Advisor. This white paper describes the conflict of interest that financial advisors have when recommending products to their clients. You must maintain a delicate relationship with your advisor because of their tendency to recommend products that will make the most money for them, not you. Taking some time to educate yourself will allow you to eliminate some of the uncertainty of your investment decisions.
As the New Year begins, I challenge you to find some extra time to expand your financial education. Reading the latest headlines on the finance section of your favorite news site is not the type of education I’m referring to. I urge you to study the investment products that you currently hold in your portfolio as well as explore other investment vehicles that you may not be familiar with. You could start with learning more about the Snider Method and trading options. Our long-term investment strategy focuses on creating cash flow during retirement. You can find out more by reading our Owner’s Manual or watching our free online Option Basics course. If you have any questions about our particular approach to investing, one of our advisors will be happy to speak with you. Feel free to contact us at 1(888)6-SNIDER or support@snideradvisors.com. Good luck and Happy New Year!
