I strongly believe that investment is not the way forward for the majority of full-time employees in the US.
This is my subjective opinion from understanding and analyzing the trends I’ve come across online concerning the preparedness of workers when it comes to retirement.
There are many factors that have not been taken into account when recommending an aggressive investment approach to 90% of America’s population. Keep in mind that they are barely managing to survive with little or no savings left.
Check out the list of some of them below:
What Happens When You Fall Sick? Does Your Company Take Care Of You When You Take A Sick Leave?
In fact, the real question is,
How many companies have mandated sick leave policies?
You will be shocked to find out.
In the USA, only 10 States, 23 cities and 2 counties have actually mandated Sick Leave and implemented it.
I do not need to remind you fo the fact that there are 50 States in the USA, and if only 10 have decided to take this issue seriously, it means employees working in the remaining 40 States are in great trouble when they fall sick.
They are more likely going to get fired for falling sick and missing work.
Either way round, once you fall sick, your resources will now be diverted towards restoring your health. How feasible will it be for you in this type of situation to continue to invest consistently?
Food for thought.
What Happens If You Decide To Look For A New Job?
While some people have succeeded to land their first job and stick to it for decades, the vast majority (me included) simply face a different reality. Many reasons could explain why people decide to look for new jobs: health, salary, distance, family, etc…
What is important to note here is that it usually takes time to get a new job, during which making consistent installments to your various investment programs would become impossible, even non-strategic and unhealthy.
Working Round The Clock Will Make Your Health Detorioriate Even Faster
Why am I bringing this up? Here is the thing.
In order to encourage aggressive savings to investment opportunities, most Financial Advisors recommend that you work your way through summer in order to make and save more.
It’s only a matter of time before your body snaps. You might be feeling youthful, young and energetic, and so deceive yourself into thinking that you can continue to physically push your body to extreme limits.
While you can hardly feel the strain in the present, it will eventually catch up with you in the future, with rapidly deteriorating health conditions.
Don’t jeopardize your health simply because your financial advisor requested that you work extra hours to save more. There are better alternatives for making extra income without physically pushing yourself to the limit.
Many Americans Start Off Their Careers With Huge Debts To Pay
Did you know that it takes 10 years and much longer to pay off students loans? So how possible will it be to be saving aggressively and paying off loans at the same time?
I could go on.
If you find yourself in any of the situations mentioned above and even those not yet mentioned because they are many [PLEASE FEEL FREE TO SHARE IN THE COMMENTS SECTION HERE, SOME OF THE REASONS WHY YOU CANNOT SAVE], I need you to understand that you shouldn’t blame yourself for not being able to save. These are circumstances way beyond your control.
You can, however, look to better cost-effective alternatives, with even greater potentials of raising a huge amount of income conveniently. Not only will they help you to retire early without any need for savings, but they will enable you to live a much more balanced life:
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