No Need to Worry: Defeating the Biggest Fear About Money

Fear doesn’t just make you anxious. It limits what you can do, because you naturally steer clear what you fear.

For example, let’s say you’re afraid of water. According to Harvard Medical School, the fear of water (or aquaphobia) is common. And it causes some people to avoid the kind of deep water they’d encounter on a cruise. Others have a fear of getting into water, and so won’t go swimming or even use a bathtub.1

Fortunately, there are ways to greatly lessen or even completely overcome this fear. They take time and often include gradually acclimating yourself to deeper and deeper water.

But you can’t simply ignore this fear and hope it goes away. Harvard Medical says that to overcome aquaphobia you must, “Try to think about what exactly you might be nervous about. If you can identify the fear, then you can look for solutions.”

This is good advice for defeating any kind of unreasonable anxiety—especially if it involves money.

According to a recent survey by Alianz Life Insurance, a “remarkable” 61% of Americans say they are more afraid of running out of money in retirement than they are of death. And yet 40% of respondents said they don’t have a financial plan for retirement and “they’re planning to just figure it out when they get there.”

If we can believe the medical experts at Harvard, that’s not a good way to deal with a significant fear.

Running out of money in retirement is a real possibility—if you haven’t forecast how much money you’ll need to live and come up with a plan to save up that amount of money while you’re working.

However, funding your retirement is more than a simple math problem. Your post-work life is going to be different. It would be prudent to begin by acknowledging that change and setting expectations accordingly. Then you can begin to plan your finances around what your new chapter will look like.

But that’s not all. You need to take into account the fact that life is full of surprises. There are going to be some factors that affect your life that you simply can’t predict right now. And that’s why your plan needs to include some flexibility. When an unexpected situation arises (financial, health-related, or otherwise), you need to have options in place.

There’s no need to live in fear. Your trusted fiduciary financial advisor can help you talk through the specifics of the retirement you hope to have, then he or she can help you with the financial planning so that you’ll know how much you’ll need to live on and can be on track to save for that goal.

If you ever have any questions about your investments or retirement plans, please feel free to give me a call at 801-545-0696.

Regards,
Mark Lund
Stonecreek Wealth Advisors, Inc.
11576 S State Street, Bldg. 1002
Draper, UT 84020

Sources:
1. http://go.pardot.com/e/91522/t-overcoming-fear-of-the-water/95mx8s/2474954036/h/oKavRTnPUNShl31cLaByqKBPC5q7BeGRT765WnEEn0E
2. http://go.pardot.com/e/91522/mericans-theyre-100000593-html/95mx8w/2474954036/h/oKavRTnPUNShl31cLaByqKBPC5q7BeGRT765WnEEn0E

Disclosure:
This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This material was prepared by Efficient Advisors, LLC (“EA’) for Mark Lund, Mark is a Fiduciary Financial Advisor in Utah. He is known as a Wealth Advisor, The 401k Advisor, Investor Coach, Financial Planner, Investment Advisor and author of The Effective Investor. Mark offers investment advisory services through Stonecreek Wealth Advisors, Inc. a fiduciary, independent, fee-only, Registered Investment Advisor firm providing investment management and retirement planning for individuals and 401k consulting for small businesses. Mark’s newsletter is called The Effective Investor Newsletter. Cities served in Utah are: Salt Lake City, Salt Lake County, Utah County, Park City, Murray City, West Jordan City, Sandy City, Draper City, South Jordan City, Provo City, Orem City, Lehi City, Highland City, Alpine City, American Fork City. The views expressed herein are exclusively those of Efficient Advisors, LLC (‘EA’), and are not meant as investment advice and are subject to change. All charts and graphs are presented for informational and analytical purposes only. No chart or graph is intended to be used as a guide to investing. EA portfolios may contain specific securities that have been mentioned herein. EA makes no claim as to the suitability of these securities. Past performance is not a guarantee of future performance. Information contained herein is derived from sources we believe to be reliable, however, we do not represent that this information is complete or accurate and it should not be relied upon as such. All opinions expressed herein are subject to change without notice. This information is prepared for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. You should seek financial advice regarding the appropriateness of investing in any security or investment strategy discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. You should note that security values may fluctuate and that each security’s price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Investing in any security involves certain systematic risks including, but not limited to, market risk, interest-rate risk, inflation risk, and event risk. These risks are in addition to any unsystematic risks associated with particular investment styles or strategies.

E-MAIL US