David Lerner Associates: Money, Stress and Financial Planning
Even though the economy is recovering, money is still the number one source of stress affecting the health and lifestyles of most Americans, says the American Psychological Association (APA). Most American households still face stagnant wages and increasing debt. Significant or growing debt has been identified as a major cause of overall financial stress.
Almost three quarters of respondents in this APA study said they experience stress due to the fact that they are concerned about financial obligations. On a scale of 1 to 10, almost a quarter of Americans (22%) rate their stress level about money at an 8. This level of stress can affect sleep patterns, which can lead to more problems, like reduced awareness while driving and making mistakes at work.
Worrying about being able to pay for basics, an increasing number of bills in the mail, or worse, liens on your paycheck or bank account can cause nightmares. Crossing one’s fingers when swiping a card at the grocery checkout is no way to live and does nothing to relieve one’s stress level.
While debt is a major stressor for anyone, it can spell disaster for retirees. It’s very difficult to service debt on a smaller, fixed income. Most Americans with debt going into retirement have not managed to save enough to fund their retirement, so it’s a doubled-edged sword. The fastest growing area of bankruptcy filers are senior citizens.
As the first wave of baby boomers reach retirement age, they’re finding that past financial excesses are catching up with them, and their golden years are not looking quite so golden after all. Reducing or eliminating debt along with putting a solid retirement savings plan in place, provides ease of mind now and for the future.
Make the most of Financial Planning Month. Get advice from professionals and make sure that the future is indeed something to look forward to.
IMPORTANT DISCLOSURES
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.
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David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC.