In partnership with Morningstar - I came across some recent research and thought you would find it valuable. I therefore share it with you and would love to hear your thoughts.. In short, it does a good job highlighting that true financial success comes from two viewpoints: actual financial progress (the numbers) and financial wellbeing or empowerment (the feeling of success or security). These are both important to me, and hopefully you too, as the evidence shows we must achieve both. Current State It would be great for you to think about your financial success via these two perspectives and let me know where you stand on a scale of 0 to 10 for each. I hope we can agree that we’ve made solid progress on both fronts, especially given the challenging last 18 months, but please let me know if that isn’t the case and I’ll do my best to help. Of course, some clients would rather not be involved in the intricacies of their financial plans. Perhaps simply by having us on your team is enough to feel financially empowered. If so, that is great. The importance of financial empowerment To demonstrate the evidence, the graph below compares people who feel empowered by their finances with people who don’t. It shows that people who feel empowered had mostly positive experiences with their finances, even in the lowest income ranges. Those who felt disempowered were less happy than their peers and didn’t reach the positive range until their annual earnings were well above $100,000 (this is US based, so equates to around R1 500 000). I
Source: https://www.morningstar.com/lp/when-more-is-less Achieving both sides of financial health As your adviser, my primary job is to crunch the numbers, but I also like to see myself as your partner in prosperity on your road to financial success. The lesson here is fascinating: A sense of financial wellbeing—as well as the money itself—may be the key to success in our financial lives. So, if there are some behavioural traits, such as reinforcing good investing habits, that I can help with – please reach out to me. For example, as it stands, it is likely you have enough assets to withstand a reasonable economic shock, but that doesn’t mean that you can’t and/or won’t be anxious about your finances. On the other end of the spectrum, I sometimes have clients that aren’t in the greatest place economically, and despite their best intentions, they still spend carelessly because they feel fine about their finances. If we want to be truly successful, we must find a balance between the two. I hope you find this different perspective useful. If you would like me to elaborate further on the above, or any other matter—I’d be delighted to chat. If you would to set up a meeting with Financial Planner please contact Kevin emails: service@daberistic.com tel:(011)658-1333 Written by: Kevin Yeh in partnership with Morningstar
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