Are you playing Russian roulette with your dream life? Social Security data indicates you might be.

I recently met up with some European friends I haven’t seen in two years. They’re all in the 30s and each had the same thing in common:

They finally started investing…. But only about 5% of their money.

The remaining 95% of their money is sitting on their bank account, rotting away to inflation.

Now, these people are not stupid.

I know them. They all have a master’s degree, a great job, and really good salaries.

They also all work at the European Central Bank.

They each have a degree in economics AND work in the field.

These people are smart.

They KNOW that keeping money in a savings account is a bad idea.

They KNOW that inflation will erode their value of their money.

They KNOW that, since they’re young, they should invest that money in stocks instead.

They know all that.

And yet they don’t do it.

They’re terrified of getting started.

Although they probably have the best profile in the world to start investing. They’ve got:

1.??????A guaranteed government job;

2.??????Employer-paid healthcare;

3.??????Unlimited sick leave;

4.??????Generous parental leave;

5.??????A child allowance for each child they get;

6.??????Access to free schooling and university for their children.

These people don’t need much cash. They may not even need an emergency fund; their next salary is guaranteed. Sick leave is paid. ?Nor do they need to keep money around to pay for healthcare, parental leave, or even schooling expenses!

They can spend as irresponsibly as they want and nothing bad happens. Or they can invest as much as they want and nothing bad happens. It's not like there won't be enough money left for healthcare or the kids' tuition: it's free for them.

Hell, their employer even has a strict ethics framework which prohibit them from trading or using leverage for speculative investments. They literally can’t screw up.

They're salaries are huge too, it's more than double the median wage in Germany. They definitely have the disposable income to start investing.

And yet, they’re not.

Which goes to show that you can give someone the ideal investment profile, an amazing salary, and the best economics education…. But it’s not enough.

Because despite their amazing situation, they’re lacking financial education.

I don’t mean financial literacy: these people are economists at the European Central Bank, they can answer questions on interest rates, inflation, and compound interest. That’s not the issue.

What they don’t have is FINANCIAL education.

They don’t understand:

1.??????What is a stock;

2.??????Why stocks tend to go up;

3. How much they need to invest;

3.??????How stocks are safer than bonds over the long term.

4.??????How to derive passive income from an investment portfolio.

5.??????And how this can allow them to retire decades earlier…

A study showed that 40% of wealth inequality can be attributed to financial literacy. This study was performed across age, gender, geography, income level, and education level.

Education and income can only get you so far.

As my friends at the European Central Bank are finding out.

Despite their amazing profile, they’ll only be able to retire when their employer says so: at the age of 65.

But according to US Social Security data, only 76.4% of men make it to age 65.

Meaning 23.6% of them will never get to retire.

Some will never even get a sabbatical or mini retirement. They'll never get to live out their dream life. And they'll be stuck in wage slavery their whole life.

23.6%

I don’t know about you, but I don’t like those odds.

That’s why I refuse to wait for the government prescribed retirement age.

That’s why I invest my money; to give myself plenty of mini retirements before that age. This way I ensure I get to do what I want before I die. And I don't leave it up to chance.

Because 23% chance of never retiring, never having any free time, is horrible. In comparison, Russian roulette gives you a 33.3% chance of death.

I'm not playing financial Russian roulette with my life. I refuse to die without having lived my life. And I’ll do whatever I can to minimize that risk. That’s why I’m so obsessed with personal finance and investing.

It’s not about the money… it’s about the freedom that this money gives you.

Are you planning to be in the 23.6%?

Follow me if you don’t.

#personalfinance #financialindependence #socialsecurity