We often see people justifying their poor financial decisions by making excuses. We’ll identify these excuses and explain why they lead to poor judgement.
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The Bass Lines:
Excuses Surrounding Social Security.
- [1:10] – You’re eligible to start withdrawing your Social Security at age 62, but that’s not always the best decision. However, you might try to justify your longing to withdraw early by suggesting you’ve “earned” it. You might even suggest it’s the logical thing to do. Regardless, you need to make a calculated decision that’s based upon your unique financial situation.
Excuses Surrounding Risky Decisions.
- [2:45] – If you’re taking too much risk, you might suggest you’re doing it to make up for long time. While it’s understandable you want to play “catch up,” you need to be careful with your portfolio as you approach retirement.
Excuses Surrounding Your Cash.
- [4:38] – Perhaps you’re risk averse, and you have too much money in cash. While it seems like a safe decision to put your money in cash, doing so could hurt you as much as keeping your money in risky investments. Don’t let fear drive your decisions, and consider the effects of inflation on your portfolio.
Excuses Surrounding A Lack Of Knowledge.
- [7:24] – People make all sorts of excuses regarding their lack of financial knowledge. While we understand finances aren’t “your thing,” we want you to understand the basics of what’s happening with your money. You don’t have to know everything their is to know about money. You just need to work alongside an advisor who explain complicated concepts to you in a way that’s easy to understand. You might find that with the right help, personal finance is less intimidating.
You can't let anybody tell you that any particular outcome in the financial world is inherently good or bad. It all depends on what team you're on, and you have to find the things that fit you and your team. - John StillmanTweet This