‘AFTER THE CHAGIM’ PERSONAL FINANCE
As originally appeared in The Jerusalem Post on October 5th, 2018.
Hesitation is often like procrastination. One may have vague doubts and feel a need to mull things over; meanwhile, other issues intrude on thought, and no decision is taken. Ask people why they procrastinate, and you probably won’t get a crisp answer.
-Robert J. Shiller
In one way or another, we all procrastinate. It maybe clicking on the “remind me later” box when we are prompted to update the antivirus on our computer, or saying that you’ll throw out the garbage in another 2 minutes. Throughout all my years as a student, I can’t remember one instance where I had a paper ready ahead of the due date or was well prepared for a test more than 12 hours before it took place. To this day I feel much more productive and energized when I am on some kind of deadline.
In Israel, the ultimate definition of procrastination is the concept of ‘after the chagim,’ where no one can focus or make a decision on anything until after the holiday season is over. Now that we are past the holidays it’s time to get back into the daily grind. This is when “life” takes over and people continue to put off things they need to do because they are just too busy. Whether it’s getting kids back in the school routine and figuring out which after-school activities to sign them up for or trying to work through the email backlog, we are all busy. Most of us struggle trying to balance career and family. Work/life balance issues and how to juggle the two have become a very popular topic over the last decade. It’s just that as all the focus goes to balance work and life, too often I see that what gets left out is attention to finances.
One more second
We never seem to have enough time to deal with issues of importance. How many of us put off reviewing our investment portfolios or fail to ever get started because we can’t find an hour or two to get organized and understand what our goals and needs are, and then how to implement a strategy to achieve those goals. When I call to check in with a client I can’t tell you the number of times I have heard, “I’m so happy that you called. I have been meaning to call you for some time; I just haven’t had the time to do it.”
Delay is costly
A few years ago Financial Engines release results of a survey they took. “We recently conducted a survey to better understand financial procrastination, and found that more than two-thirds (68 percent) of adults age 55 or older admit to procrastinating on retirement planning.” The more time not getting your finances in order, the more expensive it will be down the road. The more time you delay in getting down to business, the harder it will be to marry off your kids without taking loans. Do you want to have to move in with your children when retired because you don’t have enough money? We promise that we will “get to it soon”, but never do. If we have a pain in a knee we all go to the doctor, which takes about an hour; meeting with your financial advisor takes about as long and will help ensure that your financial health is in order.
Make order
This whole process takes about 2 hours. One hour or so for the meeting and I strongly recommend spending an hour or so in preparation. I find that when a client comes prepared to a meeting, a tremendous amount is accomplished. In preparation, map out your financial goals. Using an expert will help you decide how to invest your savings, but you should first have a firm handle of your short and long-term goals and needs. How much income will you need to supplement your existing pension? Do you have children or grandchildren to marry off? Are your elderly parents in need of care? Use your advisor as a sounding board. The advisor can tell you if your goals are realistic, and if not, you can work together to come up with goals that can be achieved.
Now is the time to get your finances in order. After all, Passover is quickly approaching in just another 6 and a half months.
The information contained in this article reflects the opinion of the author and not necessarily the opinion of Portfolio Resources Group, Inc. or its affiliates.
Aaron Katsman is author of the book Retirement GPS: How to Navigate Your Way to A Secure Financial Future with Global Investing (McGraw-Hill), and is a licensed financial professional both in the United States and Israel, and helps people who open investment accounts in the United States. Securities are offered through Portfolio Resources Group, Inc. (www.prginc.net). Member FINRA, SIPC, MSRB, FSI. For more information, call (02) 624-0995 visit www.aaronkatsman.com or email aaron@lighthousecapital.co.il.
