Click Here For Print

A $5 Million Nest Egg Does Not Buy A Fulfilling Retirement

5167 1

The law of the hammer is a cognitive bias to treat every problem as if it’s a nail. People do it with money. As financial professionals, however, we want to be clear that money won’t buy you a fulfilling retirement.

Money can take the worry out of your retirement, but it does not give your life more meaning or make it more fulfilling.

Simply put, your financial bottom line is not necessarily the best measure of living a fulfilling life. Yet the two goals are often confused. Financial goals are often thought of as the goal of financial planning but helping clients define their non-financial goals is just as important.

A recent article in The Wall Street Journal (WSJ) shows how financial goals are commonly mistaken for goals needed to live a fulfilling life. The article is a collection of vignettes profiling retirees with $5 million. WSJ reports all the $5 million-plus retirees have big travel budgets, and some are more frugal, but most spend less than $200,000 annually.

Buried in the sixth paragraph: “And money alone doesn’t answer the other question retirees wrestle with: How to find purpose and meaning in this chapter of life?”

The Journal is a great publication, but they buried the lead! The leading financial daily newspaper perpetuates the myth that money is the solution retirement. This is a common misconception.

Finding purpose and meaning to your life is referred to as “the other question retirees wrestle with.” It’s not “the other question,” it’s THE question!

It’s not uncommon for people to think money solves all problems. As personal financial professionals, however, we want to emphasize that money can make life less worrisome but not necessarily more fulfilling. Please let us know if you would like help in defining non-financial goals that can make life more fulfilling and use your resources to accomplish goals adding meaning to your life.

Nothing contained herein is to be considered a solicitation, research material, an investment recommendation, or advice of any kind, and it is subject to change without notice. Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. Product suitability must be independently determined for each individual investor. Tax advice always depends on your particular personal situation and preferences. You should consult the appropriate financial professional regarding your specific circumstances.
The material represents an assessment of financial, economic and tax law at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions.
This article was written by a professional financial journalist for Advisor Products and is not intended as legal or investment advice.



This article was written by a professional financial journalist for Foresight Investment Advisors, LLC. Information contained in articles is believed to be reliable and is not intended as legal or investment advice.

©2024 Advisor Products Inc. All Rights Reserved.