Stephen Goehl is a financial advisor with more than four decades of experience. As a personal advisor for countless clients, he helped many people attain financial freedom over the years. Furthermore, he was recognized by the Top of the Table Qualifier for the Million Dollar Round Table. That rare achievement puts him within the top one percent of all financial advisor in the world. Besides his business-related endeavors, he also played football while in college. In fact, some of his stats were as impressive as multiple rushing touchdowns every single game. Currently, Stephen Goehl is President and Founder of Goehl Financial Services.
What are some of the most important financial tips that you have for young people?
There are quite a few that I used to give to my clients. First, learn the key difference between a “need” and a “want.” “Need” is something that one must possess. A simple “want,” on the other hand, is generally a secondary necessity that a person can live without. I try to educate people that they should prioritize and always obtain what they must have before spending money on other things.
For example, buying a new car is nice yet not always optimal. Unfortunately, a lot of people who get a hold of a substantial amount of capital lose focus. Meaning, instead of paying off their mortgage per se, they purchase a new vehicle or a vacation home. I advise against such practices as it is a road to more liability.
Is there a perfect way of saving money for retirement?
Not necessarily. The perfect way to save for retirement is to simply be dedicated and maintain a proper influx of money into your retirement account over a long period of time. Most large firms offer what is known as a 401K plan with matching contributions. That means that whatever you invest in your retirement account, your company will match. Thus, it is basically like free money which nobody should ignore. Then again, there are a lot of private equity businesses that can do a great job with retirement saving. It just depends on one’s preference.
Does spending in retirement differ from spending while employed?
It somewhat depends. First, you have to ask yourself a couple of questions. Did you save an amount of money that should be enough for the next few decades? Then, do you plan to keep investing? If you believe that you do not possess enough capital, your spending habits must become strict. After all, there are no more salaries when you stop working, and your funds will slowly reduce.
What are some of the main issues that you notice people deal with when it comes to their finances?
Mostly impulse purchases. Whether it is something as small as a minor grocery item or a brand new house, it does not matter. The bottom line is that there is a large issue and people eventually perpetuate it enough to become a liability. One must always put their fixed cost before spending money on items that are not accounted for. One way to achieve a level of financial freedom is to budget every month. Although it can be quite tedious, I learned that most people benefit from seeing the actual cost versus income table.
Could you explain the concept of a 401K rollover?
Absolutely. It is basically the process of moving all your funds from a 401K or some other account to your individual retirement account. Those are known as the IRAs. Some of the main reasons why you would do this are the potential tax savings through deferment and additional investment opportunities. Nevertheless, as simple as it may sound, it can turn into a nightmare. You should always consult a professional who can point you in the right direction. Doing so will minimize the room for error.
Do you currently budget for your spending?
Not very much. After many decades of budgeting for myself and others, I can now handle my finances effortlessly. Sometimes, I use tools to help me forecast certain expenses. Still, most of my income and spending is accounted for just by habit.