Don’t Let These 3 Financial Mistakes Hold You Back

Everyone makes mistakes, whether it’s buying the wrong size shoe, buying a left handed can opener when you’re right handed, or forgetting your computer on the way to work. As long as we are learning from our mistakes, we can grow from them. There’s nothing that can’t be fixed. So when it comes to your personal finances, here are some tips to help you avoid some of the most common mess-up’s:

1. Not diversifying your retirement savings

Too many people rely on their 401(k) to get them through retirement. But when it comes time to take money out of their 401(k) plan, many people aren’t familiar with the rules of distribution. Get clear about the tax treatment of your retirement distributions so you don’t end up paying unnecessary penalties. In addition, consider diversifying your retirement money so you can take advantage of different types of tax rates, such as capital gains versus ordinary income tax. And when it comes to legacy planning, working with an adviser is critical to understanding how to handle inherited IRA’s and other retirement accounts.

2.Not being prepared for the unexpected

This is one of the biggest mistakes you can make. If your plan will only work in the best of situations, it is not a great plan. Your plans should work in all circumstances for you to truly be successful. Stress check your plan by making sure that you have contingencies in place. For example, if something were to happen, how long would you and your family go before running out of money? Do you have 6 months worth of savings in case of unexpected layoffs? Do you have disability insurance in case you have a long term health issue? Is your family protected by life insurance in case the worst happens? The best thing you can do for you and your family is to protect it.

3.Not consulting an expert

When it comes to finances, a lot of people focus on a single thing - debt. But the reality is not all debt is created equal. It’s good to consult an expert on how you should be paying off debt, while also saving and growing your money. There are many rules and regulations to consider when handling your money. Why not talk to someone who is trained to know all the in’s and out’s of money? Finances are not a one size fits all, so make sure you talk to a financial adviser who can help you make the right decisions at the right time, so you can enjoy your wealth in the future.

Talk to your Leap adviser today to make planning your financial future sane, sound and simple.