INDUSTRY INSIGHT
YOUR FINANCES
SPONSORED CONTENT
FINANCIAL SUCCESS
IS A MATTER OF
CHOICE, NOT
CHANCE
I
t’s easy, it’s quick, and anyone can do it. This is the message
we hear quite often from the online brokerage firms and
other financial ads. If achieving financial independence
is so easy, THEN why does a Government Accountability
Office (GAO) analysis show that the median retirement savings
for Americans between age 55 and 64 is only $107,000? It’s no
wonder that, according to the Department of Labor, 52% of
retired Americans have Social Security as their primary source of
income.
Maybe it’s not so easy. Maybe it takes time. And maybe you
need a little help along the way. Just saying...
Many times, there is a general lack of discipline and inability
to think long term, to plan for the future and to live within
one’s means. There may be too much focus on today, with little
thought for tomorrow. A majority of Americans need to step up
their retirement savings. A rule of thumb for the amount you
should have saved for retirement is 8 to 10 times your annual
income.
The ability to live within one’s means is one of the keys to
financial independence and it doesn’t mean you have to be a
minimalist. If a person in their 20s saves 10% to 15% of their
income consistently over their working career, they will end up
with a meaningful retirement nest egg. Simple. Right?
Well, easy to say, but obviously not so easy to do. Life gets in
the way, and according to statistics very few ever develop the
discipline and are able to attain financial independence.
It’s all about lifestyle and expectations. For a 25-year-old,
retirement seems very far away, and for a 55-year-old, saving for
retirement now seems unrealistic.
Of course, no one wants to admit failure or blame themselves.
I believe this is one of the reasons socialism is gaining in
popularity here in the U.S. It’s easier to make excuses and look to
the government to take care of us rather than do the hard work
of taking care of ourselves and our families.
Socialism is all about the here and now, contrary to successful
individual investors who have to focus on the future. You don’t
get rich overnight, but many times this is the expectation.
Our Southpointe-based wealth management firm was
founded over 30 years ago. We have earned the trust of many
high-net-worth individuals, and I believe we have helped many
individuals achieve true financial independence. Not too long
ago, we received a phone call from a prospective couple who
had been referred to us. Let’s call them Jay and Robin (not their
real names).
We scheduled an introductory meeting. Both Jay and Robin
were very affable, and we got along great. They had inherited
some money, a significant amount.
Now, I don’t know what our client who referred them to us
said regarding our services, but it quickly became apparent that
they thought we were investment wizards and that we had some
kind of magical formula in which we could double their money
every 15 minutes.
As I explained our process, Jay and Robin kept asking us,
“What else? What other ideas do you have? What else can you
offer?”
I soon realized I was boring the heck out of them talking about
planning, diversification, long-term investing and patience.
Finally, I said, “If you are looking for excitement in managing your
investments, we may not be the best fit. On the other hand, if
you are looking to invest wisely, preserve your wealth, and build
it in a tax-efficient manner over time, that’s what we do.”
We can help you attain your financial goals, and we can help
you become an overnight success, but only if you are patient and
define overnight success as greater than 3 to 5 years—more like
10 years.
It’s OK to have high expectations when you invest, but to be
successful you must temper your expectations with patience and
prudence. Financial independence as a goal is a marathon, not a
sprint. The good news is we live in America, and financial success
is a matter of choice for the individual, not chance.
This Industry Insight was written by Garrett S. Hoge.
Garrett S. Hoge, CFP®, ChFC®, MS of H Financial
Management, is a private wealth manager based
in Southpointe serving the ever-changing financial
needs of his clients. Please contact Garrett at H
Financial Management, 400 Southpointe Blvd.,
#420, Canonsburg, PA 15317, Phone: 724.745.9406,
Email: [email protected], or via the Web: www.
hfinancialmanagement.com.
Securities offered through Triad Advisors, LLC, Member
FINRA/SIPC • Advisory Services offered through H
Financial Management.
H Financial Management is not affiliated with Triad
Advisors, LLC.
PETERS TOWNSHIP
❘
APRIL/MAY 2019
31