Why are Americans broke? On May 15, 2018, Charles Schwab released their second annual Modern Wealth Index Assessment for 2018. What this report revealed is that Americans have some work to do to rightsize their finances. What was even more interesting is that this Wealth Index Assessment identified the number one contributing factor to realizing financial success.
You don’t want to miss this latest installment of The Money Guy Show. Here is what you will learn by tuning in to today’s episode:
- How many Americans are living paycheck to paycheck
- What the average 401(k) account balance is for individuals between 50 and 59 and 60 and 69 years of age according to Fidelity
- What the top 10 percentile of overall performers have in common according to the Charles Schwab Wealth Index
- Why having a written financial plan contributes, significantly, to a person’s financial success
- The 3 most common reasons people gave for not having a financial plan
- How to overcome the obstacle of not having a financial plan
- Free resources you can start using right now to begin your financial plan
- A few uplifting takeaways from the Charles Schwab Wealth Index:
- Millennials are doing a better job of planning than their older peers
- 31% have a written plan (compared to 20% of Gen Xers & 22% of Boomers)
- 22% are willing to work with advisors (Boomers = 25%; Gen Xers at 16%)
- 64% of Millennials believe they will become wealthy in their lifetime
- Other things beyond money are factored into people’s overall definition of wealth
- The majority of people believe saving and investing and hard work is how to achieve wealth over time.
- Millennials are doing a better job of planning than their older peers
- The updated projections of how much money Americans need to feel financially comfortable vs. become wealthy
Resources Mentioned in this Episode
- 2018 Charles Schwab Modern Wealth Index Assessment
- Fidelity research on 401k account balances by age
- The Millionaire Next Door by Thomas J. Stanley and William D. Danko
- The 30(ish) Financial Plan: A Step by Step Guide to Financial Independence
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