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Don’t Let Unfair Comparisons Steal Your Thankfulness – Presented by Mark K. Lund, Utah Financial Advisor

Financial Advisor UtahIt’s always fun to look through an old newspaper, especially if it was printed more than 50 years ago. On the front page under bold headlines you can read about the biggest concerns of that day. It’s interesting to note how many urgent problems of that era are even thought about today.

But even more entertaining is a look through the ads to see how much prices have changed. A new car for $2,995. A three-bedroom house for $16,000. Groceries for a fraction of what we pay for them today. If you find yourself nostalgic for a time when everything seemed so inexpensive, you’re not alone.

Ben Carlson, a financial advisor who’s studied the history of retirement, writes that this fondness for a past era is called “golden age thinking.” As examples of this, he cites popular social media posts which feature idealized illustrations of happy people in the 1950s overlaid with text such as: “Once upon a time, a family could own a home, a car, and send their kids to college—all on one income.”1

It certainly sounds like a much better economic era than the one we’re in now. Except that what the caption describes was not the experience for the majority of households.

In response to one of these financially nostalgic posts, economist Joseph Politano pointed out that compared to the 1950s, today’s rate of home ownership is 20% higher. On average, we own three times as many cars. And the number of people with college degrees has jumped more than 600%.2

Carlson writes that when it comes to retirement, we are also, on average, far better off today. “In 1880, more than three-quarters of men older than 65 were still in the labor force (working 55-60 hours a week). That number was nearly 50% still in 1950. Today it’s more like 19%.”And back then, for the vast majority of workers, a planned early retirement was never an option.

People in the past also had a lot less free time.

Carlson observes, “They didn’t obsessively watch cable news to hear bad news all day. They didn’t get to spend time on social media when they were bored. They didn’t complain about rising vacation prices because no one really took vacations.”

Every era has its advantages as well as its struggles. And by being realistic about the past, especially in terms of economic conditions, we can guard against deceptive golden age thinking. Life in our own era comes with plenty of challenges, both financial and personal. But we still have very much to be thankful for.

And of course, that gratefulness begins by acknowledging all the things we enjoy that money can’t buy.

We hope that during this Thanksgiving season you’re able to take some time to count your blessings. We all have so many reasons to be thankful.

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/91522/8-the-evolution-of-retirement-/942wsc/2123590096/h/oJUEFJ69hlfpJigCceRQch17UzILlyuf4WrTQzhGWFI
2. http://go.pardot.com/e/91522/tatus-1638379674999873538-s-20/942wsg/2123590096/h/oJUEFJ69hlfpJigCceRQch17UzILlyuf4WrTQzhGWFI

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 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.

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