Traditional Financial Thinking is Flawed
Since I became a proponent of the Prosperity Economics approach 10 years ago, I continue to be surprised at how traditional financial thinking is perpetuated by the government, financial institutions and the media. We continue to hear falsehoods that facilitate poor decision making. For example, we are encouraged to put pre-tax money into our retirement accounts now. Yet we are likely to pay tax at a higher rate when we retire. I can’t help but call that REVERSE Tax Planning!
We’re also told to invest in stocks, bonds and other funds that claim to have averaged high rates of return. But this isn’t particularly true overall. The “average” numbers are misleading! For example, over the last 80 years, the Dow Jones Index averaged 6.46%, but the ACTUAL return was only 4.5%. (I’ll have more on Average vs. Actual for you in another post.)
Yet the reality is that reviewing rates of return is like looking in the rearview mirror. We are only seeing a snapshot of the past. Those rates of return are not indicators of a product’s future performance, nor are they guarantees! We want to look forward, not back.
So how do we break away from the party line that we are fed day after day? By challenging traditional financial thinking, by really looking at the numbers, and uncovering who is benefiting from our investments. We can also shake things up by working with like-minded people.
Here’s an example. I have been frustrated with the current climate of financial thinking for years. Knowing there was a better way, I began studying Prosperity Economics. I also joined the Wealth & Wisdom Institute where we discuss financial myths and how to help ourselves and our clients to make better financial decisions. In support of that effort, I also a volunteer as a speaker and financial educator with the Society for Financial Awareness (SOFA), a non-profit organization whose mission it is to eliminate financial illiteracy and enlighten the public through free educational opportunities.
If you are ready to question traditional approaches and investments that don’t offer guarantees, visit my website, read my blog or subscribe to my newsletter. You’ll see that I’m not like everyone else. I have YOUR best interests in mind, and I can show you how to think differently and how to stop losing money. Call or email me today. Your future begins now.
