By FirstWave Financial
I have been known to say that all financial strategies can be appropriate, but the right strategy for YOU depends on your context. For example, if you can tolerate the sometimes wild fluctuations of the stock market, then maybe your portfolio should contain an allocation to stocks to capture the higher returns this asset class has historically provided. If you can’t ride out the ups and downs of the market, then you should probably avoid investing in stocks.
A significant factor that influences what you can do with your money is where you are along the five stages of your financial life. These stages are: Young Adulthood, Middle Adulthood, Peak Earnings Years, Financial Independence, and Later in Life. There are ground swells of life events occurring at each of these stages that significantly affect the actions you can or should take with your WealthCoach™.
In Young Adulthood, you are often bombarded with financial recommendations coming from the media, relatives, friends and neighbors. This can create a lot of complexity and confusion. Fear of making the wrong decision can keep you from making the right decisions, and habits started at this stage can really help or hurt you later on.
That is why I wrote a series of articles that contain five specific actions to during each of the five financial life stages. These articles can be found on the Resources page of our website at www.FirstWaveFinancial.com. These actions are a good start and can help you create habits that will contribute toward improved WealthConfidence™.
These articles can be used in different ways. You can read all the actions and see which of them you are doing right now. This can help you determine the financial life stage you are currently in. You may be surprised to discover you are further along in your financial life than you expected. Or you can pick the financial life stage where you think you are now, and use the actions listed there to determine how well you are implementing all or most of them.
It is simply impossible to save as much as you need to early in your financial life, but there are actions you can take to build a foundation for the future. Conversely, there are risks that may be acceptable earlier that should be avoided later in your financial life. Being aware of your progress through these financial life stages helps you make your financial decisions so they support and reinforce each other and contribute to the financial future you have in mind.
What financial life stage are you in? Let us know if we can help you create the financial life you dream of. Call our wealth services firm in Satellite Beach, FL – Melbourne/Brevard area at (321) 773-7773 to schedule your complimentary initial consultation.
You should not assume that any discussion or information contained in this publication serves as the receipt of, or as a substitute for, personalized investment advice from FirstWave Financial. A copy of the FirstWave’s current written disclosure statement discussing our advisory services and fees is available upon request.