Fear of Missing out- My neighbor told me
I very often field questions form individuals quoting their neighbors, or friends, wondering if they should follow the same financial path and make similar financial decisions and investments. I cannot reiterate enough the caution of falling into this trap. Each individual has their own set of circumstances, goals, investments, income and more. What works for one individual may or may not work for another. While I find it wise to learn what others are doing and encourage questions and inquiries, it is important to maintain an open mind to the response. In one instance a client requested a Roth IRA Conversion on their retirement account. While I didn’t agree with this request due to a lack of financial benefit to the client given their financial make-up and goals, it is the clients monies to do as they wish. My job is to educate clients on the financial outcomes based on various decisions, but cannot deny a clients request if I disagree. Shortly after I received multiple phone calls from other clients’ friends with the original client, requesting Roth IRA Conversions. After educating the friends of the financial ramifications, they came to realize this strategy was not suitable for them. It is human nature to discuss decisions and recommend friends and neighbors follow suit, to thereby validate ones own personal decision. Keeping this in mind will assist in the fear of missing out syndrome. It is easy to fall victim to this, truly.
The information contained herein is based on our understanding of current tax law. The tax and legislative information may be subject to change and different interpretations. We recommend that you seek professional legal advice for applicability to your personal situation. As required by the IRS, you are advised that any discussion of tax issues in this material is not intended or written to be used, and cannot be used, (a) to avoid penalties imposed under the Internal Revenue Code or (b) to promote, market or recommend to another party any transaction or matter addressed herein.
