Securing your retirement -
is it just a case of mind over matter?
Our thoughts shape our lives, particularly those thoughts which recur. Which is fine if those thoughts are all positive and inspirational, but not so good if they are negative and undermine our ability to grow our lives.
People often have self-limiting beliefs with money. “There’s no such thing as an honest rich person”, for instance. Isolated examples don’t make that belief true though. There are many well- off individuals who have gained their wealth by solving problems, helping others, while looking after the environment and who then generously donate their time and money back to the community.
Tied into this false belief is that ‘no-one will like me if I have money, that others will judge me as different from the person I really am.’ So, better to not have much or work hard to earn more.
Anyone with these beliefs has a barrier to retirement success. They are less likely to seek out opportunities to invest and grow their wealth or to seek advice. Their beliefs become an excuse to do nothing. Almost to avoid money, certainly not to discuss it or to have a plan around it.
These thoughts might not be conscious. They might just be whirring away in the subconscious. A comment a parent made when they were young. The attitudes of people they have known and worked with or socialised with over the years. Sometimes we need to look deep inside ourselves to expose our thought patterns to the light of day. And to evaluate them as useful or not. And if we do find unhelpful practices to then do something about them.
“I’m just not good with money” is another self-limiting belief. Yes, it might be true that you enjoy retail therapy, that money just seems to slip through your fingers and that you live for today. But none of those things actually stop you investing for tomorrow as well. It just needs a plan.
Your toughest barrier can be your own mind and sometimes we just have to learn to be uncomfortable to grow and learn. And to understand the drivers for why we act as we do. An avoider, for instance, who feels negatively about money or feels they don’t deserve it needs to understand why that is. Or a spender, who is trying to fill in gaps in their lives, but in doing so is always short of money.
Our goal doesn’t have to be significant wealth. Far from it. For most of us having sufficient funds to retire on our own terms will do. To be able to visit family, have coffee with friends or take the occasional out of town holiday.
What to do? For most setting a target is a good start. Then having the right investment mix for their age and stage, investing regular amounts, increasing them where possible and maximising KiwiSaver will make a significant contribution to the result they need.
The key is to systematise as far as possible. For instance, establish a direct debit so that funds automatically leave your bank account each month without thought or action being needed.
Having considered our self-limiting beliefs, we at least have the opportunity to do something about them.
People often have self-limiting beliefs with money. “There’s no such thing as an honest rich person”, for instance. Isolated examples don’t make that belief true though. There are many well- off individuals who have gained their wealth by solving problems, helping others, while looking after the environment and who then generously donate their time and money back to the community.
Tied into this false belief is that ‘no-one will like me if I have money, that others will judge me as different from the person I really am.’ So, better to not have much or work hard to earn more.
Anyone with these beliefs has a barrier to retirement success. They are less likely to seek out opportunities to invest and grow their wealth or to seek advice. Their beliefs become an excuse to do nothing. Almost to avoid money, certainly not to discuss it or to have a plan around it.
These thoughts might not be conscious. They might just be whirring away in the subconscious. A comment a parent made when they were young. The attitudes of people they have known and worked with or socialised with over the years. Sometimes we need to look deep inside ourselves to expose our thought patterns to the light of day. And to evaluate them as useful or not. And if we do find unhelpful practices to then do something about them.
“I’m just not good with money” is another self-limiting belief. Yes, it might be true that you enjoy retail therapy, that money just seems to slip through your fingers and that you live for today. But none of those things actually stop you investing for tomorrow as well. It just needs a plan.
Your toughest barrier can be your own mind and sometimes we just have to learn to be uncomfortable to grow and learn. And to understand the drivers for why we act as we do. An avoider, for instance, who feels negatively about money or feels they don’t deserve it needs to understand why that is. Or a spender, who is trying to fill in gaps in their lives, but in doing so is always short of money.
Our goal doesn’t have to be significant wealth. Far from it. For most of us having sufficient funds to retire on our own terms will do. To be able to visit family, have coffee with friends or take the occasional out of town holiday.
What to do? For most setting a target is a good start. Then having the right investment mix for their age and stage, investing regular amounts, increasing them where possible and maximising KiwiSaver will make a significant contribution to the result they need.
The key is to systematise as far as possible. For instance, establish a direct debit so that funds automatically leave your bank account each month without thought or action being needed.
Having considered our self-limiting beliefs, we at least have the opportunity to do something about them.
***
Stephen McFarlane is an adviser with NZ Funds Private Wealth in Timaru. The opinions expressed in this column are his own. A copy of Stephen’s Disclosure Statements are available on request, free of charge.
First published in the Timaru Courier on August 2019, as 'Case of mind over matter curbing secure retirement.'
