6 Common Fears And Issues Concerning Financial Security

ThinkstockPhotos-76755229-265639-editedHaving financial security is a notion driven largely by emotion. It’s a safe bet that at least nine out of every 10 Americans have some fear over their financial future. But, at CircleBlack, we don’t support a gambler’s mindset. We understand the importance of data and insight into total wealth.

Many fears stem simply from a lack of knowledge into your own portfolio. Is only 10% of America prepared to achieve their financial goals, or are we ill equipped to confidently answer questions about our money?

Let’s find out by revealing the six most common anxieties and problems with understanding financial security, accompanied by the solutions to give you control of your wealth. 

The 6 Common Financial Security Fears And Issues

Problem 1: “I’m Playing A Game”
With investing, many feel like they’re playing a game that they don’t completely understand. If you don’t understand what you need to do to achieve your long-term financial goals or how to get help, you’re not going to be confident in your ability to accomplish those dreams.

Solution – The first step is to evaluate where you currently stand and calculate how much you’re going to need in retirement. Then, create a roadmap that outlines what is required to get there. Lean on your financial advisor for support to build this plan and execute it.

Problem 2: Lack Of Financial Transparency And Organization
Most investors have several savings and investment accounts, all held in different places. It makes tracking your portfolio and total wealth incredibly challenging and time consuming. With so many unique accounts, it’s difficult to understand how each one impacts the others and if there are holistic issues you need to address.

Solution – Some investors use spreadsheets to organize their portfolio, but technology exists to help automate this process. Investment tracking apps and software aggregate all of your account information and organize it in one place. Within a single system, comprehending your financial health and pinpointing problems is simple.

Problem 3: Absence Of A Plan
If you don’t know exactly what you want to accomplish with your savings, it’s impossible to determine if you’ll get to where you want to be. It’s like if you were going to drive from the East Coast to the West Coast: You have a general idea of the direction in which you need to go, but without a map and help from people with the best routes, the journey is apt to be very stressful and scary.

Solution – As with Problem 1, define specific financial goals and create a plan to get there. If you pinpoint your destination and map out your route before you leave, your journey is bound to be far smoother. And, of course, check your GPS along the way to ensure that nothing has changed and there isn’t a new route to get you where you want to be more efficiently.

Problem 4: Fearing Factors You Can’t Control
Many investors fear the external, uncontrollable factors that impact their financial future and security. The fear of losing your job or good health, for example, clouds your perception of your current financial standing and future net worth.

Solution – Redirect your energy to factors you’re able to control. Create an emergency fund for the unexpected to help calm your fears. Holistically speaking, address your investment choices and how much you save. If you make smart, informed decisions and monitor your portfolio, financial success follows.

Problem 5: Expectations Are Out Of Whack
Unrealistic expectations – often driven by a lack of knowledge about market norms – create unnecessary stress. If you anticipate an incredible rate of return but are realistically earning a suitable yield, you might incorrectly assume that your financial security is compromised. The same can be said for a lack of understanding of volatility and the way in which markets move.

Solution – Work with your advisor to set realistic financial goals. Any unrealistic goal – whether it’s an exorbitant amount of savings or far too little time to accumulate wealth – makes you feel like you don’t have control. But, in reality, the real issue is with the goals you’ve set and/or your understanding of the normal ups and downs of investing.

Problem 6: Feeling Alone On An Island
If you don’t feel like you have the support you need to invest intelligently and without stress, you’re not alone by any means. For many, investing is complex and sometimes confusing. 

Solution – First and foremost, seek professional help. Additionally, use an investment tracking app that not only monitors your portfolio, but also keeps you informed of portfolio updates and news of anything that impacts your future net worth or financial goals.

A feeling of financial security is contingent on a number of factors. If you’re suffering from the anxieties and issues common to most investors, address them with the outlined solutions. Control of your wealth is not difficult to achieve – it’s simply a matter of planning and investing in a stress-free experience.

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