Planning for your financial future can be much easier than most people think. However, there are a few common mistakes that people make which can put their financial success at risk. We’re going to go over a few and how you can avoid them.
1) Waiting to save or thinking there is still more time: Never put off saving today. The simple fact is that you will save more money over the long term the earlier you begin. If you’re in your 20s or 30s, that doesn’t mean you have time to waste before putting your money away and planning for the future.
2) Being overly aggressive or conservative: This mistake is one that you may need some professional help to figure out if you’re making. We all know the drill, though. When you fill out the 401K form from your company, you simply check the boxes for most conservative or most aggressive, thinking that either one of those will pay off in some respect.
The correct method, however, is speaking with a financial professional to determine if your investments are meeting your goals.
3) Avoiding talking about your investments or not dealing with old accounts: Out of sight, out of mind, right? The only true way to have a handle on your investments is to know as much about them as possible. Also, be sure that you’re keeping track of accounts as you change or leave previous employers.
4) Not planning for the future now: Everyone procrastinates. Some are just better at it than others. If you want to get to a goal, it’s best to take the first step by talking with a financial advisor before your procrastination derails your future goals.
5) Retiring without talking to a financial advisor: As much as you may know about your own personal investments, it pays off to have another set of eyes look at your situation for you. Don’t take one of the biggest steps of your life without consulting with a qualified financial advisor.
6) Not consolidating with a single advisor: Much like it pays to have one doctor who knows about all of your medications, using one financial advisor you trust can greatly help in the long term. Not consolidating can leave gaps in the holistic plan you deserve and can lead to an inappropriate allocation of your investments as a whole. A financial advisor is trained in looking at the big picture and helping you reach your goal.
Contact the McLean team of Steel Valley Investment Group for more information on how we can help you achieve your goals.