Welcome to the Parkmount Financial Partners blog! My name is Joe Boughan, a CERTIFIED FINANCIAL PLANNER™ Professional dedicated to sharing insights from my journey to help you make informed financial decisions. Today, let's explore why Shaquille O'Neal recommends saving an astonishingly high 75% of your income and how this advice can be relevant to your financial planning.
Why Saving is Crucial
Since I started my career in Boston working with high-net-worth investors, I have noticed one common question that I continually encounter in financial planning is, "How much should I save?" This is a foundational question, especially for high-net-worth individuals in looking for a reliable financial advisor. Saving effectively can ensure a stable financial future, even if your current income is substantial.
Shaquille O'Neal, an NBA legend, emphasizes the importance of saving a significant portion of your income. It is important to understand he is speaking to NBA players when he says this! Despite earning multi-million-dollar contracts, many NBA players face financial difficulties post-retirement. A Sports Illustrated study revealed that 60% of NBA players go bankrupt after retiring. This statistic underscores the universal human nature that fights against the idea of saving - this is one area where emotions interfere with of financial planning effectively, regardless of income level.
Choosing to work with a financial advisor can be valuable because it can be a knowledgeable and caring presence that provides the support needed to execute on a plan that you may not follow through on alone when left to your own devices.
Learning from Shaquille O'Neal
Shaquille O'Neal managed to grow his net worth substantially even after retiring, serving as a role model for financial discipline. His advice to save 75% of one's income might seem extreme, but for NBA players this is an achievable number. Whether you're a high-income earner or just starting, understanding the need for prudent saving is essential, and balancing the need to save for the future with the need to provide for current needs and wants can be easily achieved with a carefully crafted financial plan.
Personalized Financial Planning
At Parkmount Financial Partners, we understand that every individual’s financial situation is unique. Factors such as career, salary, and personal goals all influence the ideal savings rate. While 10% is often cited as a standard minimum savings rate for most individuals planning to provide for a secure future, this number can vary widely. For some, a goal of 15-20% might be more appropriate if you want to get ahead or are in peak earning years, while others may need to adjust based on their circumstances.
Preparing for the Future
The key takeaway from Shaquille O'Neal's advice is the importance of planning for the future. It's crucial to adopt a mindset that anticipates future needs and potential challenges. Once you get your savings rate in order, that is not the end either. Then you need to figure out what is the best investment vehicle and after that, you need to determine what savings accounts may offer the best tax advantage for your unique needs. Parkmount Financial Partners, we help our clients develop personalized financial plans that can help the look forward to a future with greater confidence.
Expert Guidance
If you have questions about how much you need to save or what your retirement plan should look like, visit our website at www.parkmountfinancial.com. Also be sure to check out this artcle from GoBankingRates.com where we were quoted in discussing areas where pre-retirees can look to save money as they get ready for their transition retirement planning.
Feel free to reach out to schedule a consultation with a CERTIFIED FINANCIAL PLANNER™. We're here to help you navigate the complexities of wealth management and ensure your financial future is secure.
Join our newsletter for more insights and updates and subscribe to our YouTube channel for more financial tips and advice. Until next time, happy planning!
“Parkmount Financial Partners LLC” (herein “Parkmount Financial”) is a registered investment advisor offering advisory services in the State[s] of Massachusetts and in other jurisdictions where exempt. Registration does not imply a certain level of skill or training.
The information on this site is not intended as tax, accounting or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement of any company, security, fund, or other securities or non-securities offering. This information should not be relied upon as the sole factor in an investment making decision.
Past performance is no indication of future results. Investment in securities involves significant risk and has the potential for partial or complete loss of funds invested. It should not be assumed that any recommendations made will be profitable or equal any performance noted on this site.
The information on this site is provided “AS IS” and without warranties of any kind either express or implied. To the fullest extent permissible pursuant to applicable laws, Parkmount Financial disclaims all warranties, express or implied, including, but not limited to, implied warranties of merchantability, non-infringement, and suitability for a particular purpose.
Parkmount Financial does not warrant that the information on this site will be free from error. Your use of the information is at your sole risk. Under no circumstances shall Parkmount Financial be liable for any direct, indirect, special or consequential damages that result from the use of, or the inability to use, the information provided on this site, even if Parkmount Financial or a Parkmount Financial authorized representative has been advised of the possibility of such damages. Information contained on this site should not be considered a solicitation to buy, an offer to sell, or a recommendation of any security in any jurisdiction where such offer, solicitation, or recommendation would be unlawful or unauthorized.
Comments