🚫 Top 10 Financial Mistakes to Avoid

Let me start by wishing you and your loved ones a lovely long Memorial Day weekend and a FUN summer! I wanted to give you some food for thought - and am, thus, sharing the top 10 Money Mistakes I have seen over the years working with clients.

1️⃣ Not prioritizing tax savings.

I see so many people who invest their taxable assets, meaning those funds NOT in 401ks or IRAs, in a non-tax-effficient manner.

If you have accumulated assets beyond your retirement accounts and emergency/liquid savings, pay attention not only to the holdings, but also the tax-efficiency of the portfolios. I don't see many people getting this right without the proper guidance and portfolio options - and as a result, when I review their taxes, I see unnecessary gains or taxable income when we don't need it.

2️⃣ Investing too conservatively.

If you have a long-enough time horizon, you typically have time to invest a healthy percentage of your portfolio in stocks. Of course, everyone's situation is different, but this is one mistake I see often. And my female clients tend to be really hard workers, and great savers, but we often need to tweak their investment portfolios to include more stock.

3️⃣ Not starting soon enough.

It is never too early OR too late, to start investing. If you have young adult loved ones, be sure to talk to them about the importance of saving for retirement (as far away as that seeems!) - early. If you have teenage children earning incomes over the summer, I love talking about Guardian ROTH IRAs as a great strategy to consider.

4️⃣ Not having private life insurance.

If your loved ones depend on your income, please consider private life insurance. And if you're offered life insurance through your employer, be sure to quote a comparable policy on the private market. Very often we can achieve better, cheaper coverage, depending on your age and health.

5️⃣ Not having private disability (income) insurance.

Ditto above - if your loved ones depend on your income, you should be quoting out coverage for yourself - and the earlier the better while you're young and healthy. I've seen too many families undergo extreme hardship when the breadwinners are no longer able to bring home the bacon. And May is Disability Insurance Awareness Month!

6️⃣ Having an outdated estate plan.

Sheesh - I see this a LOT! So many people have outdated, or worse, nonexistant, estate plans. If you have loved ones, please reach out to an attorney to work on creating or updating your documents!

7️⃣ Ignoring your Social Security earnings record until it is too late.

It is SO important to pay attention to your Social Security earnings history throughout your entire life -- starting when you are a new worker. It is such an important part of your overall financial health in retirement -- so understand how your earnings fit in. While we used to receive our Social Security statement annually via snail mail, now you have to go here to create an account and view your statement.

And if you're a small business owner who is tempted by the tiktokkers to set up an S-corp and reduce your taxable income, BE AWARE that this WILL impact your earnings record. There are so many amateurs out there telling you to do this. But please work with a financial planner and an accountant who can educate you on the impacts of your decisions.

8️⃣ Waiting too long to create your personal "Board of Advisors." 

I work with my breadwinner clients to help them create their own personal board of advisors. This board consists of an accountant, an attorney, and me (their financial planner and project manager keeping all the conversations moving forward).

And if you're a business owner, I also recommend a bookkeeper, at a minimum, and as you grow we often engage with HR help, CFOs, coaches, etc.

9️⃣ Putting off planning.

We do a TERRIBLE job in this country of teaching personal finance. As a result, so many people feel ashamed about their current situation. You are not alone! But do not let this prevent you from working with a planner, asap. I work with my clients to SHOW them the impacts of their financial decisions. It is so much easier to understand when you can see all of your accounts in one spot (via technology and tools) and then we can discuss your goals and what we may need to do to help you achieve them.

🔟 Not incorporating your physical and mental health in your overall financial plan.

Life is short! You want to be healthy enough to do all the fun things you can imagine. Take care of your health always - so that your body and mind can allow you to enjoy life. Plus, when you're healthy, we can often achieve lower premiums on insurance, longer earnings careers, etc. Health is wealth! 💪🏽 = 💵

In summary, if you find yourself guilty of any of the above tips, I can help. 

Wishing you all peace, love and a FUN SUMMER!🌻

PS - 📲 Schedule time if you'd like to discuss your situation.

The opinions voiced are for general information only and are not intended to provide specific advice or recommendations for any individual. And of course please note that this email is not intended for specific tax advice. Consult your advisors.