By: Scott Stanley at Valley Oak Wealth Management
The difference between what is ideal vs what is actual is staggering.
I found it interesting that the bottom 50% of income earners in America only owns ½ % of the countries stocks, bonds and mutual funds*. One of the obvious reasons for this is that they don’t have the extra income to invest because they are busy making sure they have enough for groceries and other basic necessities.
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But what if this isn’t the only factor? What if the extra income (no matter how small) was actually there but the perception of “investing is for the rich and wealthy” deterred the middle class from investing? I believe this is the more likely scenario.
The middle class should be so prudent to reevaluate and question the status of their savings. You would think that with less, the middle class would do their best to preserve and grow their retirement savings. It is important to remember that investing doesn’t always have to be extremely risky investing**. It is far too often that I have witnessed savings accounts that have been kept in cash (not invested) for years. The cash value in these stagnant accounts is often wiped out by inflation and opportunity cost.
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The most important thing to understand when we see an income inequality as drastic as the one in the US is that just because you are not rich or wealthy doesn’t mean you can’t invest and try to grow the assets you have. Seek help from someone that can help guide you to make prudent investment decisions. Financial advice should be sought out regardless of the size of your savings.
If you have any questions or you realize now that you would like to seek help from an advisor, please contact me at (415) 898-4439.
p.s. this video provides some insight into the inequality of income in America and proves that the middle class needs to take charge and do something about this disparity. http://www.youtube.com/watch?v=QPKKQnijnsM
*http://www.youtube.com/watch?v=QPKKQnijnsM
** Investing involves risk, including loss of principal.Scott Stanley is a Registered Representative with, and securities are offered through, LPL Financial, Member SIPC www.sipc.org.
The opinions voiced in this article are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.
The registered representatives associated with this blog may only discuss and/or transact securities business with residents of the following states: CA.
