In life and matters of the wallet, rest assured that we all make mistakes. Mistakes are a critical part of our education process – but when it comes to your finances, some lessons and consequences can be quite lasting. In an effort to help you learn from others, and potentially save a great deal of money and heartache, you may wish to review some of the following most common financial mistakes, and ways to avoid or mitigate them.
When it comes to finances, that old cliché holds true: “hope for the best, but plan for the worst.” This is especially true for women. Why? On average, over the course of our lifetimes, women:
While saving for retirement, many focus on the advantages of traditional Individual Retirement Accounts (IRA) and employer sponsored retirement plans. The advantages of these accounts include a regular savings method that reduces your current, overall taxable income – since your savings contribution comes “right off the top” of your paycheck; and the ability for your employer to make contributions, thereby growing your savings at no additional cost to you.
It may seem a bit ironic to use the words “collaborate” and “divorce” together, but it is an alternative approach to dissolving a marriage that’s worth a close look if you are facing this major life transition.
Just when it seems things can’t get any busier – December arrives. This month is typically loaded with family obligations, year-end business deadlines, and increased spending. This potent mix can wreak havoc on your budget and ultimately your ability to meet your own financial goals. To sleep a little easier this month and next, it may help to set aside a few hours now to firmly review your financial position and consider your goals and commitments in the coming New Year and “tax season”.
What is this "cliff" pundits are referring to? It's actually a possible culmination of a number of government tax and benefits changes scheduled to impact our economy simultaneously. Specifically, the Bush tax cuts and payroll tax cuts are due to expire (which would impact workers' take home pay) and extended unemployment benefits will also expire (which would eliminate an income source for those out of work.) To further complicate the situation, higher Medicare taxes will take effect and certain government discretionary spending is scheduled to halt.
It may seem a bit unusual to be examining insurance with a financial advisor, but looking at long term care insurance is a critical step in the retirement plan process. It is much easier discussing the risks potential health problems can pose to your retirement plan now, while you’re healthy, rather than later when it may be too late. Exploring the viability of long-term care insurance can provide peace-of-mind and flexibility to you and your family in the future if something were to happen.
It's hard to accumulate wealth when you shy away from the responsibility of making fiscal decisions or if the idea of money scares you. Unfortunately, this emotional attitude toward money stops many women in their financial tracks and keeps them from reaching their long-term goals.
What is a concentrated stock position? It is defined as holding one particular stock that comprises 30% or more of your overall investments or portfolio. You may wonder why this is an issue, particularly if you are saving for retirement or the long term.
Have you ever wondered why financial professionals make a fuss about credit/FICO scores? You may not think your credit score is a big deal, especially if your income is healthy; however, your income has nothing to do with your credit score. You can make a king’s ransom and have a poor credit score – or have a small income and a very high credit score. So here are some basic facts about FICO and credit scores.
