Recent headlines indicate financial independence has been elusive for many people. A 2019 report by the U.S. GAO, showed data that 48% of Americans over the age of 55 have saved nothing for retirement. According to Rob DeHollander, a local financial planner at DeHollander Financial Group,
“The key to financial independence is more about our habits than our earnings over our lifetime.”
It takes discipline. Here are three tips to get you on the track to a successful retirement.
- Live below your means. While this seems obvious, it’s difficult for many people — especially younger workers. Living below one’s means allows you to save money and accumulate assets. “For most people, the goal is to maintain your desired standard of living in retirement,” says DeHollander. “This requires savings. Consumer debt is subtle. In the short term, it makes you feel richer. But over the long term, it’s making you poorer. Be a saver, not a borrower.”
- Take risks. Taking financial risks can be scary. However, taking educated, prudent risks over time can create unique opportunities for wealth. “Our most successful clients have two traits — they’re courageous and they’re patient,” says DeHollander, noting that career changes, starting a business, purchasing real estate or investing during market corrections all involve risk. “Life provides all kinds of opportunities — don’t be afraid to take advantage of them.”
- Own well-run businesses. DeHollander’s grandmother told him, “people make money, but also money makes money,” and he’s put that maxim to good use over the years. We tend to think of wealth in terms of income but most wealthy individuals own assets. DeHollander believes a great way to build wealth is to invest in well-run businesses. Starting one’s own business is one option, but for most people, investing in stock funds is a more practical approach. “Wealth can be created by having a passion and a plan for your own business or investing in talented people who run great businesses,” says DeHollander.
The DeHollander Financial Group helps individuals and businesses become more financially independent every day. They can help you build your portfolio, evaluate your opportunities and plan for a successful retirement.