It seems like there are a fair amount of people who are uninformed or misinformed in regard to their thoughts on individual financial responsibility and the present-day workplace. So I decided to write a short article just to deal with the basics.
A Common Misconception
A common misconception is that our employer will take care of us for retirement as long as we just “stay loyal by continuing our work.” Although there is nothing wrong with loyalty in and of itself, this does not negate the fact that retirement planning and financial planning is the individual’s responsibility and not an employer’s. There was a time when corporations could afford to take care of their employees for retirement. For the most part, this no longer applies today.
A Common Educational Emphasis
In many industrialized countries today their is an emphasis on preparing oneself to be a good employee. It appears that less is taught on entrepreneurship and investing. Learning how to be an asset as an employee can be profitable, but only learning this leaves us unprepared for completing our own financial plan. At some point we may need to engage in our own businesses and/or investments.
Seeking out a wise financial advisor is always prudent. It’s always best to seek advisors who are fee-based only. You can also seek the advice of someone who can help you build a profitable business that will support your financial plan.
Awakening in Retirement
I’ve seen many older people “just awaken” in retirement to the reality that their job(s) was not enough to take care of their retirement expenses which could include expensive medical bills they were not planning on having. One way to learn wisdom is from the voice of experience; another way is to “learn from the school of hardknox.”
Proactivity and Self-Education as an Alternative
Instead of waiting until there is a crisis in finances, we can learn ourselves from others who have profitable experience in the arena of financial planning.
Businesses and Investments
Businesses that provide residual income and profitable investments can provide an alternative to totally relying on our employer for extra expenses and retirement. There are some businesses you can do part-time in addition to your employment. You can also invest as you have more resources like money, time, and energy. The main key concept to keep in mind is to reduce your liabilities like debt and increase your assets like profitable investments for example.
Many people are under the assumption that their employer’s income is enough to support them for life. An alternative approach is to create your own financial plan that includes businesses, investments, and a fee-based financial advisor.
Do you understand the need to create your own financial plan and have you sought out the advice of a fee-based financial advisor as well as profitable businesses that provide residual income and profitable investments? So what are some new thoughts and specific actions you have after reading this article in regard to individual financial responsibility and the present-day workplace?