Tax Advice Santa Rosa – WHY DON’T ALL AFFLUENT PEOPLE BECOME WEALTHY?

October 8th, 2013 → 8:28 pm @ // No Comments

Perception, hesitation & poor decisions are factors.

Why do some people let their potential for lifetime wealth slip away? Some people are better off economically at 30 or 40 than they are at 50 or 60. What happened? Could it be that bad decisions and inaction are to blame?

They buy depreciating assets, instead of allowing assets to appreciate. In 2012, a Federal Reserve Survey of Consumer Finances noted that only 52% of American households earn more money than they spend. They rack up debt and live on margin. What are they spending so much on? It isn’t just consumer staples – it’s not unusual for a family to “keep up with the Joneses” and buy the latest nonessential items.

Contrary to the bumper sticker, he who dies with the most toys does not necessarily win, and he may leave a pile of debt and little savings behind. Today’s hottest cars, clothes, flat-screens, phones and tablets may be tomorrow’s discards.

They never contribute to an IRA or qualified retirement plan. For all the flak directed recently at workplace retirement plans and IRAs, they still provide a tremendous opportunity to save and invest. They are tax-advantaged, which contributes to greater compounding of the …Read More


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