AFTER conducting interviews with numerous pre-retirees and retirees last week, I gave much consideration to the subject of procrastination. Have we all been guilty of procrastination at some point in our lives? According to Professor Joseph R Ferrari of DePaul University, and American Psychological Association Fellow, “While everyone may procrastinate, not everyone is a procrastinator.” His research showed that about 20 per cent of people are “chronic procrastinators”.

Procrastination is called the “thief of time”. Once time is spent, there is no recourse. You just can’t recoup it. When it comes to investing, time is the most valuable asset. Procrastination can rob your money of compound interest, and retards or delays financial freedom and wealth creation. It’s a dream stealer that leads to much stress and anxiety for the ageing investor.

One pre-retiree I spoke with disclosed that she had over $2 million saved. She thought investing was risky, but now realises she is running out of time to earn more on her money. She is an excellent saver who, for many years, hesitated about investing funds in the stock market because of the fear of loss.

Fortunately, she now recognises that she may spend up to 20 years or more in retirement, and cannot save her way to financial freedom. Inflation is known as “the thief in the night”. It robs the purchasing power of her money. Avoiding risks is not the answer — managing risks is.

She is now ready to employ a diversification strategy to grow her funds for the retirement years, and expressed regret at delaying her investment journey. With a much clearer understanding of the cost of inflation and the time value of money, she was determined not to procrastinate a day longer in taking the necessary action to secure her financial future. She has proven that the law of accumulation will aid the exponential growth of her funds.

In the same way that she has added to her savings monthly, through automation, she will employ the same strategy to grow her investment funds for the future. Running out of time means the likelihood of running out of money. The best way to beat procrastination is decisive action.

Several pre-retirees decided to invest aggressively. For them, it’s a matter of now or never. They admitted that procrastination (the thief) had silently robbed them of time and money but financial literacy played a role in their decision to make a bold step to change the trajectory of their lives. They are willing to make the necessary sacrifices now for a better future, monitoring their spending, sticking to a budget, and choosing a lifestyle of delayed gratification.

A retiree who I interviewed was rejoicing at the performance of his long-term investment. He started his investment journey in 2022. It was at a time when all stock markets in the world were experiencing sharp declines. Having made the bold step to invest long-term when others were panicking and abandoning their financial plans, he has no regrets but instead stated that it was the best investment decision that he made in his life. His funds had grown by 44 per cent over three years.

This retiree’s health had deteriorated since opening the investment account, resulting in his loss of sight. The fact that he can no longer see made him more determined to persevere with his investment. He was forced to retire early due to ill health. His story should inspire us to “make hay while the sun shines”. Your health can change in a jiffy.

He regrets not starting his investment journey much earlier. Some people procrastinate their investment journey by telling themselves that they have more time. Retirement may seem far off but it only takes one tragedy to change the course of one’s life. It’s best to outlive your money than to run out of money as you age.

Another male retiree expressed remorse about delaying his investment journey in the stock market. In his own words, “I wish I were 40 years old, I would have done things differently.” It was a moment of retrospection. He was not interested in wasting another minute. Looking to the future, he seeks to make the best use of the time and resources he now has available. Had he invested in stocks in his 40s, he would not face a liquidity problem today. His immediate goal is to avoid being house-rich and cash-poor.

Procrastination is a real threat to financial security. Procrastination can be caused by “blind spots”. When you have a blind spot about investing it means you don’t understand or are “blind” to the importance of investing, and that leaves room for procrastination. People who do not consistently invest have a blind spot. Because they are investing inconsistently, they are not making the best use of time and money. Consistency keeps your money working for you and unleashes the power of compound interest. Author Charles Prosper says that consistency “is the key to all success”.

People make excuses about investing, such as, “I don’t have enough money”, “I am too old”, or “I can’t afford to invest.” The question you should answer is, “Do I want to outlive my money?” Your answer should keep procrastination at bay.

Start investing with what you have and begin where you are. A professional and experienced financial advisor can assist with your investment journey. Research has found that investors who have the services of a financial advisor earn higher returns on their investments.

– Grace G McLean is a financial advisor and retirement specialist at BPM Financial Limited. Contact her at gmclean@bpmfinancial or visit the website: www.bpmfinancial.com. She is also a podcaster for Living Above
Self. E-mail her at livingaboveself@gmail.com