Wealthy People Have Smart Financial Habits. But There's More.

Having enough money for a sweet retirement takes more than just saving. It takes smart spending and discipline. If you're falling behind, it's time for a financial lifestyle overhaul. Five steps will get you on your way.

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When I introduce myself as a wealth adviser, people sometimes respond with a quick chuckle and something like, “I’ll call you when I get wealthy.” The fact is, you don’t have to “get wealthy” to need financial services. Most families’ primary concern isn’t how to protect an abundance of assets; it’s how to cover unexpected setbacks and fund retirement.

The Census Bureau recently reported that the median net worth for those under 35 years old is only $4,138 and their home equity is just $2,762. Those between 55 and 64 have a median net worth of only $66,547, with home equity of just $97,951. Their home equity is an illiquid 60% of their total net worth. To summarize, by retirement, the median worker has saved only about $2,080 a year over 30 years, with the rest tied up in the residence.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Timothy Barrett, Trust Counsel
Senior Vice President, Argent Trust Company

Timothy Barrett is a Senior Vice President and Trust Counsel with Argent Trust Company. Timothy is a graduate of the Louis D. Brandeis School of Law, past Officer of the Metro Louisville Estate Planning Council and the Estate Planning Council of Southern Indiana, Member of the Louisville, Kentucky, and Indiana Bar Associations, and the University of Kentucky Estate Planning Institute Committee.