5 Ways Which Can be Negatively Affecting the Chances of Building Wealth
Having been working with Nurses over a long period of time there are certain specific wealth building roadblocks that we keep seeing.
Nurses are in general great savers as they actively participate in their retirement plan at work.
Nurses definitely also love traveling, shopping and keeping up a great lifestyle and often we see certain patterns that potentially could negatively affect how well wealth is being built and affect how well someone enters retirement or other milestones.
Below are some areas that we see can be negatively affecting the chances of building wealth effectively?
Over-reliance on 401(k) or 403(b)
Very often participating in a retirement plan at work is the only savings vehicle that is in place.
And even though the retirement plan at work can be a great way to save and potentially get free matching from the employer it is definitely not enough to only save money this way.
Low overall savings rate
This goes hand in hand with the fact that many nurses only save through their employer-sponsored plan and very often save less than 10% of their income.
In order to recreate the same lifestyle in retirement, the savings rate has to be higher than that.
Chasing rate of return
One of the reasons why some nurses may save too little could be that they are hoping that they will get some very high rate of return on their investments.
Some nurses carry credit card debt or other short-term debt and it is very difficult to get ahead financially when there is a high-interest rate on a credit card while saving or investments are growing at much lower rates.
Understanding what each account is there for and understanding how each account is taxed, how each account is invested and really just having a wide angle view of all finances from insurance, debt, assets and cash flow is very important.
Material discussed is meant for general informational purposes only and is not to be construed as tax, legal, or
investment advice. Although the information has been gathered from sources believed to be reliable, please
note that individual situations can vary. Therefore, the information should be relied upon only when
coordinated with individual professional advice.
This material contains the current opinions of the [author/presenter] but not
necessarily those of Guardian or its subsidiaries and such opinions are subject to change without
Written by CreativeNurse Team
2016-22589 Exp. 5/18