It might surprise you to learn that even high earning professionals struggle at building a nest egg. That is the topic of an opinion article over at MarketWatch.
So, yes, even high earning professionals have trouble with personal finance. It seems the professionals that fail to build a nest egg owe their failure to being in one of two groups.
Group One Delegates All Responsibility
From the article:
“One group tells themselves that they don’t understand money and delegates the responsibility to a professional. They get “a money guy” who seems to be capable of investing their savings and just forget about it for a few decades”.
The problem is, letting someone else control your savings and investment can be risky. We have all heard of scams. But even in the best cases, using an financial professional to make all your investment decisions can be very expensive.
After everything is said and done, the high fees of using a financial professional can really eat away at your gains. The truth is, most of the gains can end up in someone else’s pocket.
Group Two Tries To Invest All On Their Own
From the article:
“A second group does get a bit more educated, but it’s largely a street education. They open a trading account, plunk down a few thousand bucks and start hunting for stock tips”.
Trading the stock market can be very difficult, and most professional stock traders under-perform the overall stock market over time. So, image your chances of getting great returns as a novice stock trader.
If I am actively trading and investing, I want my efforts to make more than the benchmark of 5% to 8% that I use. So, making less than this, which most novice traders are doing, is not what I want to see.
I admit, I got a late start. So, I need to invest in a way that makes up for lost time. That is why I trade the Forex market and developed a way of trading that beats other investment methods.
Whatever you decide, you are going to need a plan. Here’s mine: