The financially unprepared are trumped by lack of motivation, study shows

Aug 04, 2011

Individuals need to know what's ahead of them in order to plan well for the future.

A recent survey by State Farm indicates that Americans today don't feel the need for extensive financial assistance, and that they're content with the resources they have, sufficient for "just three months or fewer." On the one hand, it may be a pleasant sign that the passing economic crisis hasn't emotionally disrupted citizens. On the other hand, however, it may show a lack of understanding of what they are vulnerable to.

Aside from the 35 percent happy with what they had, the study reported 15 percent who admitted to having barely a month's worth of preparation for some kind of downturn, and 54 percent who would simply accept a lower paying position in the event of a layoff.

The figures might be attributed to data by Principal Financial Group, which found that three-fourths of advisors surveyed saw clients that were already on thin ice could not find the motivation to envision their financial goals.

The group implores those in need to use their current living quality to plan realistically for the future. Starting early with retirement planning is crucial to this process. "Fears of an unfulfilled retirement can be avoided by making a plan and sticking to it," the group's senior Vice President Tim Minard said.

Having a dream is the top ingredient of fiscal success, according to Minard. Starting with a simple life insurance quote may be a good first step.

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