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Tom Meaglia, ChFC®, AEP®,

CLU®, CRPC®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507

 

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

 

Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120

 

Email: tom@meagliafinancialconsulting.com

Website: www.meagliafinancialconsulting.com

September/October 2024

The Paycheck Next Door

The Paycheck Next Door

Everyone views wealth in a very personal way. Life experiences often influence those views. Many studies have been done on the subject, and here are some of the findings.


Happiness
While the old saying says money can’t buy happiness, the National Academy of Sciences (PNAS) found that it can influence happiness. Those earning about $150,000 report 20% satisfaction with their lives and well-being compared to those earning $500,00, reporting 60% satisfaction.* Similarly, a Swedish study of lottery winners found that even years after winning, lottery winners had greater life satisfaction and mental health and were better prepared to face life’s challenges, such as divorce, illness, and being alone. Apparently, substantial wealth made those things less difficult to cope with.**


Effect of Raises
According to PNAS, at the low end of the earnings spectrum, a raise is more likely to squash negative feelings about well-being than produce positive ones. At about $80,000 earnings, raises begin boosting feelings of satisfaction and well-being.


People at all income levels are tempted to use raises and bonuses to splurge. Before you treat yourself, financial professionals advise you to consider using raises and bonuses for any outstanding debt, to increase retirement savings, and for other investments. Then, treat yourself.


Another Happiness Influencer
The National Library of Medicine houses data confirms that for some people, keeping up with the Joneses is important for happiness. This data presents a split conclusion on neighborhood wealth’s impact on happiness and satisfaction. Findings suggest that people are generally happier living in more affluent areas, and individuals’ well-being is lower if they have less wealth or think they have less wealth than their neighbors.***


Personal Factors
Your neighborhood, paycheck, raise or bonus, the net worth of your assets, or the amount in your retirement accounts can’t literally buy you happiness.
Happiness
is also highly influenced by personal factors, as the graphic illustrates. However, it turns out that wealth may be associated with some of these categories of “happiness,” specifically self-focused positive emotions such as pride and contentment. A more challenging, higher paying career may give you both contentment and pride. Confidence in how well you can care for your family financially may fuel your contentment and peace. Giving children and grandchildren access to better education and their consequent achievements may make you proud.***


*Well Being Depends on Social Comparison, 2021
**Long-Run Effects of Lottery Wealth on Psychological Well-Being, 2020
***American Psychological Association, cited by Psychology Today, 2024
****American Psychological Association, cited by Psychology Today, 2024


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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
Insurance and annuity products are not sold through Fusion Capital Management. Fusion does not endorse any annuity or insurance product, nor does it guarantee any insurance or annuity performance. Annuity and life insurance guarantees are subject to the claims-paying ability of the issuing insurance company. If you withdraw money from or surrender your contract within a certain time after investing, the insurance company may assess a surrender charge. Withdrawals may be subject to tax penalties and income taxes. Persons selling annuities and other insurance products receive compensation for these transactions. These commissions are separate and distinct from Fusion's investment advisory fees.
Meaglia Financial Consulting and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

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