While audiences all over the Galaxy flock to see the newest release in the Star Wars movie series, CERTIFIED FINANCIAL PLANNER PROFESSIONAL Steve Juetten noticed that there is great personal finance wisdom that can be gleaned from the first six movies.
Dec 18, 2015 /prREACH/ -- While audiences all over the Galaxy flock to see the newest release in the Star Wars movie series, CERTIFIED FINANCIAL PLANNER PROFESSIONAL Steve Juetten noticed that there is great personal finance wisdom that can be gleaned from the first six movies. Here is what he found:
"Do or not do. There is no try," said Yoda.
Juetten thinks the lesson here is that people should not try to follow the financial plan they've created. They must commit to doing it. Juetten warns that with the New Year soon debuting, many people will start with the best of money intentions and then lose their way within a few months. Instead, as Yoda suggests, there is no try. Just do.
"Stay on target."
Red Leader told his fellow star fighter pilots to stay on target when they were attacking the Death Star. Juetten says this is good money advice, too. Keeping personal financial goals top of mind helps investors stay on target and so they are not distracted by whatever happens during the year. If the target is to get out of debt, save for college for the kids, or save for retirement, there will be temptation to waver from those goals. Juetten notes that staying on target for those goals is the only way to accomplish them.
"It is unwise to drop defenses."
So was the warning of Darth Vader. Juetten agrees. The first rule in personal finance is to protect self and family. That means having an emergency fund, good medical insurance, the right amount of life insurance and disability insurance in case of illness or injury.
"I find lack of faith disturbing."
So lamented Lord Vader. Juetten assumed that Vader was thinking about the value of a diversified investment portfolio when he said that. Juetten notes that spreading money among different investment classes is a cornerstone of investing. Straying from this basic approach to speculate with money is risky. With tongue in cheek, Juetten says, "Vader might have been a good financial planner because he seems to know a lot about personal finance. The light saber might be a good way to get people's attention, too."
"Use the force."
Obi Wan Kenobi told Luke to use the force. Juetten assumes he meant that young Luke should use the power of compounding interest to build up his retirement funds. The idea is to save early and let the power of compounding increase Luke's retirement account. According to Juetten. "Whether or not Obi Wan had a 401(k) plan, he seems to know the power of compounding interest and wants Luke to follow this force. That is good advice."
"In my experience, there is no such thing as luck."
These were the words of Obi Wan. Juetten agrees when it comes to personal finances. Luck is not a plan when considering the future. Most good money results come from setting specific goals, creating action steps, and following through on those steps over time. Like Obi Wan said, trusting luck to make dreams come true is not a good idea."
Learn more about how to reach financial freedom goals by downloading a free copy of Juetten's Little Green Book of personal finance advice by visiting www.finpath.com/gift. Reach out to Juetten at 425-373-9393 for interviews and to inquire about fee-only personal finance and investment advisory services.