Sometimes when I see some financial advisors online and the way they talk about money, they say so many complicated things easily. Some of this may sound easy and they think everybody should be able to do it but in the long run, this can be very complicated. I was listening to a financial advisor today even though what this man was saying makes a lot of sense on paper and is very easy to do, many people will find this difficult and impossible to do for many reasons especially the kind of challenges they can encounter in the future.
What the financial advisor was saying is that everybody can be a millionaire when they retire. He said they can simply do that by putting $43,000 into the stock market( S&P 500 ) and if they compound it to get a minimum of 10% every year for 40 years by the time they are 60 or 70 years old, they will be a millionaire which is around $1.8 million by just compounding. The other option if you can’t get the $43,000 instantly is you invest $300 every month for eight years and after you’ve done this for eight years, you can leave it and let it compound for another 30 years and you get $1.8 million by the time you retire.
What most financial advisors forget is that you can’t teach patients because what most people like is the vision and the power to control themself.
The first type of people is those who truly have that kind of money in their account. People have the money and might as well have ideas of their own on how to use such an amount of money but the problem is that they don't have the patience to see the money grow. for those who don’t have the money and want to save every month for years may seem too long, most people don’t have the patience to do something repeatedly for eight years. The patient to do something for eight years and also wait for another 30 to 40 years for it to compound looks unrealistic to them and also the patience to put your money into stock and wait for 40 years may be too far for most people.
When you look at such numbers, it looks so easy and very attractive but people will not do it because of a lack of patience and vision and that is why they continue to give you excuses like they might not live up to that, and also dollar might worth less in years to come. They are just telling themselves not to do what could change their life. This is the set of people that when they see their mate do the same thing and work out for them, They will regret it at their old age. The truth is even if you don’t live up to that age at least you’ll be able to leave something for your family by the time you die and end the cycle of poverty in your generation but the kind of enjoyment you picture of yourself will not let us.
It is easy for social media to sell you dreams in this age, where all you have to do is open an app and people sell you the reality that is not yours
People find waiting for a long time these days difficult because it is now becoming very hard to resist temptation. It is easy to buy things that you don’t need, and wish for lifestyle that is out of your league with the help of the Internet and social media. So, keeping money for years and also having a lot of money somewhere might be difficult in this age just because of how the system works. Temptation is another big problem and challenge that people are facing in this era. Social media has increased this thousandfold, We have a lot of noise around us in this age which makes it harder to live by some of these rules.
It is very important to know that some things that might be easy on paper board can be very difficult when you try them out, but as human beings, there is nothing too difficult for us, especially when we are determined to make it happen and this is not even a challenge for those that truly want to change the state of their finance and want to be a millionaire by the time they retire. We can do everything that we want as a human being when we are truly focused without distraction.
Thanks for your time.
blockquote