“Millions of good people make simple mistakes. They listen to the crowd rather than make investment decisions that are customized to their specific situation.”
St. Joseph, MO (PRWEB) November 28, 2016
Is the middle class in serious trouble? Stephen Schwarzman, a titan of Wall Street and CEO of Blackstone, was quoted recently in Forbes about the distressing income inequality that many middle class Americans are feeling today. He noted, citing a Fed study, that roughly half of Americans say they can’t come up with $400 for an emergency. Schwarzman stated that Americans “should be scared, they should feel insecure, and they should be unhappy with their government” over this.
The article also says:
- Most people with money problems have issues with saving money and their income.
- Lack of savings puts notable stress on American families.
- 60 percent of families surveyed said they’ve had at least one financial emergency in the last 12 months.
Dan Danford, CEO of Family Investment Center, said there are many reasons why the middle class doesn’t thrive in the current environment. He suggests one issue they experience is related to bad financial decisions that are often made with the best intentions.
“Millions of good people make simple mistakes,” Danford said. “They listen to the crowd rather than make investment decisions that are customized to their specific situation.”
Danford said many families that fit into the definition of middle class are unprepared, perhaps even bored, with the process of investing. Furthermore, they’re not up to date on financial investment innovations.
“Many of the money practices held dear by middle class citizens are woefully outdated,” Danford said. “Taught with the best intentions, they were practical for a simpler era.”
As an example of how the middle class and more affluent investors handle their money, Danford notes that banks are a “fine place” to manage cash, yet the wealthy rarely use them for investing. He also notes that the immediacy of daily life often takes precedence, leading the middle class to disregard investments.
“A simple visit to a financial advisor can be the wake up call that prevents a family from experiencing a meltdown over a $400 financial emergency,” Danford said.
About Dan Danford and Family Investment Center:
Dan Danford serves as Founder/CEO of Family Investment Center, a full-service, commission-free investment advisory firm. Based in St. Joseph, MO, Family Investment Center also serves clients in the Kansas City Northland area and across the country.
Danford holds an MBA and in 2012, he was featured in the book “America’s Top Financial Advisors.” A 2009 Wall Street Journal article outlined Danford’s unique birthday messages to clients, complete with a $2 bill inside the envelope. In 2009, Danford was also quoted on “ABC News” for his insight into how parents can protect funds for their children’s college education. He is a CFP® and was listed as one of the 150 Best Financial Advisors for Doctors in 2008 and 2009 by Medical Economics magazine. A 2006 article in The New York Times quoted Danford’s insights on working with a financial advisor. In 2014, Danford was featured in an article exploring solutions to math anxiety in the Voices section of the Wall Street Journal.
Danford is author of the recently-published book “Stuck in The Middle: The Mistakes that Jeopardize Your Financial Success and How to Fix Them.” The book asks the question “What if your middle class background is holding you back from the financial success you want?” Danford answers the question by explaining that many middle class money beliefs are just plain wrong, and he explains why in simple terms.