Home Feature Story Low on Confidence? Start Saving & Investing Money

[Mental Health Awareness Month] Low on Confidence? Start Saving & Investing Money

Study Finds That Saving & Investing Builds Confidence

A study by TIAA finds that Americans are having a bit of a crisis of confidence when it comes to their financial security, with fear of events like an unexpected expense, financially supporting loved ones, or even cuts to Social Security and Medicare impacting their peace of mind.

“A major lesson of this survey is that effectively addressing uncertainties is key to feeling financially secure.” – Lori Dickerson Fouché, CEO, TIAA Financial Solutions

The Cost of Financial Stress

While many people can relate to the issues TIAA found to be factors in causing financial stress, few understand the impact that stress has on overall well-being.

  • People with financial stress are more than twice as likely to experience mental health problems, including depression and anxiety.
  • 29% of people with high financial stress report severe anxiety.
  • High financial stress levels increase blood pressure, heart disease, and increase the risk of stroke by nearly 20%.

(Source: University of Nottingham & Northwestern University)

The report found that ‘fear that they won’t have enough money to last a lifetime’ is the number one concern among all demographics with almost two thirds of Americans “not confident” in their retirement and lifetime income plans, and only 27 percent confident they’ll have enough money to get them to the end of life.

[Click Here to Get Wealth Wednesdays Weekly Newsletter and Free Resources]

Demographic Divide                   

Confidence in a financially secure retirement seems to grow with age. 53% of Baby Boomers believe they can maintain “a good standard of living” in retirement, while just 22% of Gen Xers and 28% of Millennials shared that sentiment.

.“For Millennials, it’s not surprising they aren’t confident since they’re many years away from retirement and are likely thinking more about their immediate financial needs,” says Dan Keady, TIAA’s Chief Financial Planning Strategist,

Meanwhile, A  study by David C. John – deputy director of the Retirement Project and a senior fellow at the Brookings Institution – found women at-large, women of color, and minorities experience lower rates of retirement readiness than their white male counterparts.

In addition to systemic factors like discrimination, John writes financial education is a critical part to the overall financial wellness of these groups.

“Attitudes about saving are likely formed from an early age,” John writes. “Habits learned from when one is young tend to carry into adulthood. If children are encouraged at a young age to start saving and notions of budgeting are integrated into their daily lives, it may instill a positive attitude towards saving over their adult years.”

Financial Habits That Build Confidence & Reduce Stress

Keady and other financial experts agree that retirement planning should start as soon as possible, with as much money as possible.

That means if you only have a little to spare, then do it. Just starting on your retirement journey is statistically shown, according to the TIAA study, to boost confidence.

“Even just starting to think about it and putting a plan in place will greatly benefit people as they continue through their working years,” Keady said. “When individuals have no plan at all, they can feel even more overwhelmed and lack confidence.”

“People should closely evaluate their plan options and should even ask their employer about adding lifetime income options to their plan.” Dan Keady, TIAA’s Chief Financial Planning Strategist,

Technology has made it easier than ever to track and develop retirement savings. Apps like Acorns, Stash, and others are innovators in making investing mobile, and companies like TIAA have mobile applications to help keep retirement top-of-mind.

[Click Here To Learn About Investing In Cannabis Stocks]

Battling Uncertainty with Advice

“Two great ways of reducing uncertain outcomes are by using financial products that guarantee lifetime income and getting the advice and building the skills needed to deal with adverse events,” Fouché said.

Financial advice is best given by professionals with credentials. Certified Financial Planners (CFPs) are duty-bound by their certifications to act in their clients’ best interests, which means you can hire someone to truly have your back.

Whenever you decide that a CFP is the right choice for you, do your homework. Make sure they are certified, and can provide references to current or past clients. Not all financial planners are created equal, so it’s crucial to get the right person in your court.

When faced with uncertainty, remember that there is always a way out. Perhaps more to the point, always remember that net-worth has nothing to do with self-worth. Financial challenges do not define us – what we do about them, however, is another story.

Stacey Tisdale, a more than 20-year veteran TV broadcast financial journalist, and financial behavior expert, is one of the first women, and the first African-American to report from the New York Stock Exchange, in her role as a reporter/anchor for Dow Jones' Emmy Award winning, Wall Street Journal Television. She then went on to become one of the first on-air reporters for CBS MarketWatch and business/personal finance correspondent for CBS News, The Early Show, CBS Evening News, and CBS Radio. From 2002 to 2004, Stacey filed business and consumer reports for all of the CNN networks, including, CNN, CNNI and HLN. Stacey also reported for “Inside Africa,” a weekly news magazine show on CNN International, where one of her reports, identifying a rape camp in the hills of Liberia, brought attention, funding, international support, and helped bring eventual freedom, to women and girls imprisoned in the camp. Stacey - named by Top 100 Magazine as one of 2019's Top 100 People in Finance - was Business Correspondent for Al Jazeera America from 2013 to 2014. Before joining Al Jazeera, she reported for PBS national news magazine show Need to Know, and PBS Newshour Weekend, as well as hosting her own live daily show, Tech Live, on Microsoft co-founder Paul Allen’s Tech TV cable news network. Ms. Tisdale, former senior editor of personal finance for Black Enterprise, was also a financial expert on The Oprah Winfrey Show, and is an expert for O magazine. After a 6-year research project into what drives financial behavior, Stacey authored the critically-acclaimed book, The True Cost of Happiness:The Real Story Behind Managing Your Money (John Wiley & Sons), and became one of the pioneering journalists in behavioral finance and financial psychology. Soon after, she became a financial expert on NBC's Today Show. The research, which focused on financial behavior, also inspired her Winning Play$ financial education program, winner of the U.S. Department of Education’s Excellence in Economic Education award, and the National Association of Black Journalists Community Service award. Stacey’s broadcasting career came after her work on Wall Street as a cash manager for the commodities firm Balfour Maclaine International, investing as much as $90 million per day in global financial markets on behalf of the firm. In addition, she has created a personal finance curriculum for college students on behalf of the White House, and conducted research for the United States Congress on the financial behavior of professional athletes. Stacey creates financial education and life skills programs for professional sports teams and corporations including the WNBA”s Washington Mystics, the NFL Super Bowl champion, New York Giants, and the female employees of Microsoft. In 2019, Stacey joined the prestigious ranks of The HistoryMakers, - the United State’s largest African American oral history collection. Her story, as well as a documentary about her life, will be forever housed in the Library of Congress in Washington D.C. She is a graduate of Marymount College, winner of the 2018 Marymount College Alumna Achievement award, and a member of the Butler Society. She also attended Polytechnic of Central London in England. Stacey is on the advisory committee for The Gloria Steinem Endowed Chair for Media, Culture, and Feminist Studies at Rutgers University, and she sits on the communications committee for the gender parity movement, Paradigm for Parity. Stacey is the co-chair of Take the Lead, aimed at preparing women for leadership positions. As founder and CEO of multi-media content provider, Mind Money Media Inc., international speaker, contributor and expert for some of the leading media outlets in the world – including Time Magazine, Good Morning America, the Breakfast Club, and AJ Impact - Stacey uses her personal finance and media platforms to educate her audiences about all aspects of our complex relationship with money, as well as the ways in which socioeconomics, gender, race, age, orientation, and culture, play out in our financial experiences and careers. She also co-hosts the monthly social media personal finance event, Wealth Wednesdays, with IHeartMedia, Power 105.1 Breakfast Club host, Angela Yee. Stacey is the daughter of renowned educator Jettie Tisdale, whom there is a school named after in Bridgeport, Connecticut, and Charles Tisdale, executive director of ABCD, the largest anti-poverty agency in the state of CT, former economic policy advisor for U.S. President Jimmy Carter, and former field director of World Vision, which brings humanitarian aid to refugees worldwide.


Please enter your comment!
Please enter your name here

Most Popular

[Personal Finance] Simple Acts That Make Financial Goals A Reality

It’s hard to stay focused on our financial goals when we’re worried about money. But that’s actually the time when goal-setting matters the most. Neuroscientists...

[National Homeownership Month] How Your Side Hustle, Crowdfunding, & Airbnb, Can Make You A Homeowner!

Homeownership in the United States soared to its highest level in 12 years in 2020, as low mortgage rates and the coronavirus pandemic prompted more...

[Personal Finance] What Wealthy Blacks Can Teach Us About Investing

It’s important to consider the historic aspect of the place homeownership holds in Black culture. Owning land is what many of our forefathers experienced...

[Mental Health Awareness Month] Low on Confidence? Start Saving & Investing Money

A study by TIAA finds that Americans are having a bit of a crisis of confidence when it comes to their financial security, with...

Recent Comments