Total Financial Solutions President and CEO Arif Halaby believes that becoming financially literate at a young age is vital in creating a successful financial future.

Though younger people tend to spend what they make, Halaby noted that it’s never too early to start setting aside money.

“The sooner you can start a habit of saving, the sooner you can get into a position to where, when money comes in, part of its job is to go for the future,” he said.

Related: Total Financial Solutions CEO Cautions Community About Relying On Pensions, Offers Solutions

Jeff Girard, Halaby’s co-host on KHTS AM-1220’s “Total Financial Solutions Safer Money Hour,” seconded this, adding he’s found that the sooner you start saving, the less money you need to put into a retirement account, and the more money you can take out later.

“Maybe the word ‘retirement’ has a bit of a stigma when it comes to millennials — they think of putting money aside and (they) can’t touch it for 40 years,” he said. “But that’s just the buzz word we’ve used… It’s not necessarily a destination, it’s just a lifestyle. It’s a way of life, and the more you have set aside means you have more choices. You don’t have to go to work every day for somebody else.”

Instead of just learning how to use a checkbook in school, Halaby stressed the importance of seeking knowledge on things like learning how to make a spreadsheet and how a “profit and loss” works.

“If these are foreign terms to you … and you are putting money from your paycheck into a retirement account at work,” Halaby explained, “if you’re doing that and you don’t have financial literacy behind you, folks, that’s a piece that’s missing.”

Not only is a financially literate person more likely to have the kind of lifestyle they want in retirement, they are also less likely to be taken advantage of or fall victim to financial scams, according to Halaby.

For example, Halaby recently saw several clients who didn’t realize they were paying thousands of dollars per month in fees for their retirement accounts, which had been set up by a professional that seems to have taken advantage of them.

Though the professional in question may have disclosed the percentage that would be charged in fees on a monthly basis, if the account holder isn’t financially literate and doesn’t know to ask what that percentage translates into in dollars, this can often be the result.

“They take numbers, they skew it with percentages,” Halaby explained. “This is the same person that goes, ‘Heads I win, tails you lose.’”

From a financial literacy perspective, Halaby asked the vital question: How are you going to make sure your family wins instead?

“Don’t be bamboozled by these funny numbers, don’t be bamboozled by the ways that they change percentages, they change numbers,” Halaby said, stressing the importance of educating yourself. “Ask the questions. Be tough about it.”

Girard added, “Total Financial Solutions is a financial services company that prides itself on transparency and simplicity. Arif Halaby is available to answer your retirement questions without charge or obligation.”

Total Financial Solutions offers assistance with preparing for retirement in Santa Clarita and the surrounding valleys. Santa Clarita financial professional Arif Halaby, a Certified Estate Planner, and Total Financial Solutions staff work with people of all ages, helping them protect, grow and preserve their assets through an individualized approach. As a well-known financial professional, Arif Halaby is also the host of “Total Financial Solutions Safer Money Hour” on KHTS AM-1220. Launched in 2004, the show offers listeners retirement planning tips and guidance for dealing with today’s ever-changing financial needs.  

Total Financial Solutions, Inc.

24322 Main Street

Newhall, CA 91321

661-753-9683

800-990-7344

Total Financial Solutions – Newhall

https://www.youtube.com/watch?v=bm2dwj848Ok

Arif Halaby, Total Financial Solutions, Financial Planning, Planning for Retirement, Retirement Planning