Retirement Planning – Wealth Accumulation Requires Belief For Baby Boomers

Many people do not believe they are destined to accumulate wealth and sadly, they are usually correct. The reason it never happens has little to do with your profession, gender, background or intelligence. Like anything else in life, if you believe you can do something you take the necessary steps to achieve and refuse to let obstacles or set backs stop you.

In this article I will give you evidence of why money is your ally and not your enemy.

Let’s start with a sports analogy where two people are competing against each other. Both are equal in talent and experience but one believes they are going to win and the other lacks confidence they can win. During the competition both competitors are likely to encounter adverse situations. When this happens the confident performer will overcome the obstacles because they know it’s necessary to win. They stay focused, keep their energy, intensity and refuse to give in because they know they are supposed to win. The other performer will have a comfort level that is shy of the winners circle because after all they do not believe they can win. They are likely to settle for just being close. After the competition they will justify that they could have won if they had not encountered one or two obstacles. In this competition there is a winner and a loser but both competitors are fine with the outcome because they both got what they expected.

With the sports analogy as a back drop, the first step in believing you can accumulate wealth is look at the facts. The facts are you are almost guaranteed to be successful if you give yourself time. For decades the stock market has averaged an annual return of 10%. Real Estate has always been known as a good investment. When you encounter obstacles such as a downturn in real estate or a bad year in the stock market, draw confidence that the facts show you will win in the end if you stay the course and don’t deviate from your plan. After all it has been that way for decades, which is a very long sample.

Let us assume that you are convinced, and look at how this could change your habits. If you knew you could accumulate wealth you would most likely save/invest more and spend less because you absolutely know in the long run you would be a wealthier person. You would treat bonuses differently. Instead of spending the whole bonus you would save/invest a good portion of it to accumulate wealth. And if you are truly confident what your results will be you would feel less stressed over money and your future.

Money is not prejudice. Sometimes people think it is because they are so emotional about money. The bottom line is if you give yourself time, put together a plan to invest, be consistent and stay confident during the rough patches you will build wealth. After all you have history on your side.

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