Some Things to Pay Attention To…

Now that we’re really “into” 2020 and those of us who are digging into our New Year’s Resolutions are seeing progress while other folks may have … “misplaced” them, I wanted to pass along an interesting observation a new client made recently.

Just to set the record straight, this gentleman is not filthy rich, but as a new client, he and I had a very detailed conversation about how he invests, his income and financial goals, and his expectations for growth in 2020.

Interestingly enough, he shared how he had created and used a variety of financial structures – Roth’s, a Self-Directed 401(k), and similar accounts for his children to save far more than most families in his age bracket would have, especially given his income. 

In short, I’d never seen an individual who still worked full time for another company with so many diverse accounts dedicated to wealth building.

When I asked him what inspired him to build and execute these – and how he did it, his answer was simple.

“I’m not a rich man.  My father wasn’t either.  In fact, he retired with a bad pension and still had to work long after retirement to make ends meet.  What I realized, though, was that the people I looked up to as “rich” were doing things that people like me and my Dad weren’t doing.”

“The rich guy didn’t have a company 401(k).  He had a Roth or a Self-Directed 401(k), he’d set up accounts to preserve his family money after his death that didn’t get taxed.”

He looked around my office like he was telling a secret.  “I kind of figured out that there must be two different ways to retire in America – the way “they” want us to and the way “they” do.  The more I looked, the more I realized that even our elected officials in government didn’t use the tools they created for us – they used their own.  So I began educating myself on how the wealthy do it and slowly, I started doing just that.”

He nodded to the file on the desk, “As you can see, it’s beginning to pay off for my family.  If I can manage these accounts effectively for fifteen or so more years, I’ll never have to work again and if my children will do it as vigilantly as I have, they’ll retire by age fifty and my grandchildren won’t have to work at all.”

What had started as a meeting to get acquainted with a new client had actually turned into an interesting insight into how anyone, even with an average income, could begin to create real wealth.  Generational wealth. 

Life-changing wealth. 

So as we all look forward to what 2020 holds, no matter what your goals and resolutions were for the year, I want to encourage you to look at not only what your financial resolutions were for this new year, but also at how you plan to accomplish them.  It’s easy to save money, it’s far harder to grow it in this economy.  As I’ve mentioned several times over the last few months, though, there are ways to do it that many people have never considered. 

If, when you think about your financials this year, you’re ready to dig into and find ways to maximize your retirement and returns, I’d love to sit down and discuss what options your job might offer and the pros and cons of setting up retirement accounts outside of the basic ones most employers offer. 

I think you just might be surprised at what’s out there and how it can change your life and the lives of your family.