I am sharing this information because my culture specifically is not educated in this area. When I was growing up it felt like the norm for when a death occurs in a family, family members make arrangements to start selling dinner plates or start goFund my accounts. Something deep down inside me told me this isn't the way families should be positioned while in mourning. So about 15 years ago I decided to break that cycle for my family. I have started taking precautionary measures so that if something ever happens to our family they could be able to mourn or take care of family obligations in a blink of an eye without having to worry about any financial concerns.

The entire world is in trouble

I came across an article published by Bloomberg that discussed concerns involving the entire world, Its not just here at home or in our local community but the financial concern is on a larger scale. There was a three question test given online by the Aegon Retirement Readiness Survey 2018, this online quiz/survey measured how well people understood financial concepts. The results showed that many people who took the online quiz failed a simple 3 question financial quiz.

Only 45% of the people who took this quiz got the following answer correct:

Question: Do you think the following statement is true or false?
Buying a single company stock usually provides for a safer return than a stock mutual fund?

The options to the answer were true, false, or refuse to answer or don't know. 16% of the people who took this quiz got this answer wrong. The answer "refuse to answer or don't know" was chosen by 38%. Only 46% of the people who answered this question got the right answer.

There was a question regarding inflation. This question had the highest percentage of the answers wrong. The results to this question reveal that 20% of people don't understand how inflation hurts their money.

The illustration above was asked about what elements would affect their retirement plans and the results were suprising. The survey gives a break down by country, "retirements reduced by governement was chosen by 26% of americans.

If you would like to see how you would do on the quiz here is the questionaire:

These 3 financial questions were created by professors from Annamaria lusardi of George Washington School of Business and Olivia Mitchell, of the Wharton School of the University of Pennsylvania

Incase you would like to compare your answers and see how you did here are the answers to the 3 question quiz:
Answer to question 1: More than $102
Answer to question 2: Less than today's (inflation)
Answer to question 3: False (diversify)

If these questions concern you and you are not feeling confident that your financial position is a good as you feel it could be, feel free to reach out to me and I can help you and your family make sure that your financial planning is on solid ground so that you can build a family legacy on top of that foundation for your futures.