5 Financial Mistakes To Avoid


5 Financial Mistakes To Avoid

Posted by Infinite Wealth Advisors, LLC
8 years ago | May 16, 2016

One man and his dogWe talk to a lot of retirees who often express the wish that they had made different financial planning decisions in the past. And of course there are those in their forties and fifties, who are looking forward to retirement, but are nervous because they know they have already made mistakes.

After all, information and education are often the keys to success in any venture.

Don’t borrow money from yourself. There are a multitude of reasons that a 401(k) loan is a bad idea, such as penalties, taxes, and lost time. Always maintain an emergency savings account so that you aren’t tempted to borrow money from your retirement fund. And if the temptation arises anyway, just about any other decision is usually better than this one. The bottom line is that 401(k) loans are almost always a terrible idea.

Don’t focus too hard on saving for college. Parents almost always want to focus on their children’s needs rather than their own. It’s an admirable quality, but resist the temptation in this case. Your kids will have many options to pay for college, while you have only one way to pay for your retirement. Make your retirement savings goals your top priority.

Don’t delay. Many people find themselves jumping just one more financial hurdle before they turn their attention to retirement savings. The truth is that you should begin saving for retirement on the day that you begin your career. If you haven’t gotten started yet, do it today. Time is one valuable financial planning tool that you cannot recover once you’ve lost it.

Don’t rely on Social Security. Social Security is indeed an important part of financial planning for retirement, but it won’t cover all of your living expenses. We will do our best to keep you informed of updates to Social Security rules and regulations, and we can also show you ways to maximize your benefits. But you should still plan for another form of retirement income.

Don’t overlook all of your options. Are you claiming your full employer match amount each year? Have you opened an IRA to save additional funds for retirement? Are you taking full advantage of all tax credits available to you? Working with a skilled financial advisor can help discover all of your financial planning options. Call us with any questions, and we can help you review your plan, identify new opportunities, and maximize your potential retirement income.

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