Don’t Recommend Financial Planning

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“I’m opposed to financial planning,” said no one ever. Yet most of us avoid financial planning, despite the best efforts of the financial media to extol its virtues.

Studies of U.S.-based investors support this view. One survey found only 1% of Americans use a financial advisor. Their reasons weren’t surprising: Some felt they could do it themselves, using information easily found on the Internet. Others were put off by costs.

The real reason for lack of financial planning is much more complex.

Denial of aging

Would you plan for something unlikely to occur? Probably not.

Most people “are incapable of imagining themselves as old.”

Leon Trotsky, who developed a variant of Marxism known as Trotskyism, correctly observed: “Old age is the most unexpected of all the things that happen to a man.”