The life of a 20-something young adult is busy. Once high school is finished, most kids are off to college, then maybe graduate school. Others hit the workforce right out of high school while others join the military. Then there is dating, possibly marriage and starting a family. Once babies come along, it's difficult to concentrate on anything outside of work and raising those babies to be productive little citizens. A lot of things fall by the wayside during these years, including financial planning. In addition, many young adults in their 20s and 30s never see a financial planner until they reach their 40s or 50s, as they've been convinced that the following myths are true.
Myth #1: I am too young to worry about financial planning.
You are never too young to worry about financial planning. Financial planners do more than just establish retirement accounts and help clients fund those accounts with solid investments. Financial planners can help you determine your financial goals, map out a path to reach those goals, and give you advice on credit, debt, saving, spending and investing. You can live a debt-free life on the income you have, and still do the things you want. You need an expert to guide you in the right direction.
Myth #2: I can think about retirement later when I'm older
No one knows what the future holds. Most people expect to retire between the ages of 62 and 70. However, you may be able to retire earlier with the right investment strategies. You may also be forced to retire early due to a personal injury or down-sizing at your place of employment. It's best to start your retirement planning as early as possible, so you can retire comfortably without worrying about making catch-up contributions to your retirement accounts a few years before you actually retire.
Myth #3: I can't afford a financial planner.
Financial planners do charge a fee for their services; these professionals also have bills to pay and financial goals to meet. However, you can't afford NOT to hire a financial planner. Your financial planner will give you sound financial advice and keep you from making mistakes that will derail your plans. The fee charged by your financial advisor is minimal in comparison to the amount you can save by having an expert guide you and help you make the right decisions with your money.