financial advice

A.D. Modlin / Flickr.com https://bit.ly/2k2sMEm

James Joyce called mistakes “the portals of discovery.”

So, don’t fear making mistakes. Fear not learning from them and repeating the same few endlessly.

When it comes to financial matters, here are a few of the most harmful mistakes that, if made and repeated over and over, can do irreparable damage to your the financial security.

However, if these same mistakes are recognized, admitted, learned from and then run from, they might just do some good.

401(K) 2012 / Flickr.com https://bit.ly/2w8kxci

Living within your means is an illusion, and when you are awakened from your dream, it will be too late.

Most of us have the idea that if we are living within our means, we’re OK, even if it means we can’t save anything right now. You’re not racking up debt, but you’re also not saving. Is that OK for a while?

No.

If life was a straight line of experiences and expenses, each one following predictably after the other exactly as planned, you might be able to pull this “living barely within your means” thing off.

GotCredit / Flickr.com https://bit.ly/2W0iyVQ

Did you get a tax refund this year?

 

Maybe you look forward to getting a tax refund every year. Maybe you pay off some credit cards with it, other times you take a little vacation, do a small home renovation project or make another large purchase.

It’s almost like a savings account, right? Or better, an annual bonus payment!

But then you have this know-it-alI friend at work that says you’re giving the government a free loan. Are they right?

Well, back when savings accounts were paying 5%, your friends had a point.

Youchao Wang / Flickr.com https://bit.ly/2Z3S3xJ

I am sometimes approached by young people, often recent college graduates, who want to know if I have any financial tips for someone their age.

If you’re a young college graduate and you’re already thinking about how to be financially responsible, congratulations on separating yourself from the crowd by doing two things most people your age often don’t: seek advice and think ahead.

401(K) 2012 / FLICKR.COM https://bit.ly/2VKkIoI

Last week I talked about the benefits and limitations of taking your Social Security benefits early…before the so-called “normal retirement age (NRA).”

So now, let’s see what happens if you take your Social Security benefits “on time” or on a delayed basis.

401(K) 2012 / FLICKR.COM https://bit.ly/2VKkIoI

When should you begin taking your Social Security benefits?

Should you opt to begin your benefits as early as possible, usually age 62? Or should you wait until your normal retirement age (NRA), which may vary from age 66 to 67 these days. Or you may want to wait until the last possible minute, age 70.  

The first thing to do … is get your facts straight.

401(K) 2012 / FLICKR.COM https://bit.ly/2EP7y37

Have you gotten to the age where your investment company is sending you the required minimum distribution amount from your IRA each year?

 

If you’re like a lot of folks I know, you don’t really need the money, so it’s just sitting in the bank, earning nothing.

If that’s you, you may be wondering if you have other options.

JM / Flickr.com https://tinyurl.com/y5f92zuz

“I trust my wife completely,” he said to me. “It’s the guy after me I’m worried about.”

“I’ve decided to buy a pretty large life insurance policy on myself so that if something happens to me my wife can keep raising the kids,” he explained his reasoning to me…

 

“She would have to forgo much of her career to raise our kids alone, so it wouldn’t be fair for her to have to go back to work later in life just because I died early.”

Kat Grigg / Flickr.com https://tinyurl.com/yag6cofe

I talk to a lot of parents who want to actually see their adult children enjoy the wealth they will one day pass on to them.

 

But these same parents don’t want to give themselves broke so that those same children will one day have to take care of them financially. And they also don’t want to create dependency of their adult children on financial gifts they might give them.

The secret to finding balance is having a plan.

Salesman or advisor?

Jan 2, 2019
jerseygal2009 / FLICKR.COM https://tinyurl.com/y7b6j8mo

Along your way to finding a prince of a financial advisor, you might have to kiss a few frogs.

I hate buying clothes or cars, and it’s not just because of the financial cost. I hate spending my time shopping.

So, the last time I bought a car, I looked around on the internet (like most car buyers do these days). I was looking for a car I thought might be the proverbial right car at the right price. Then I took a deep breath, prayed for patience and walked in the dealership. How painful was this going to be?

Pages