Podcast Episode 362: The Way People Make Financial Mistakes
Financial planning is intricate and filled with potential pitfalls and mistakes that can have long-lasting impacts on your future. In the latest episode of the Money Wisdom podcast, Matt Pastor, RICP® breaks down the most common ways people make financial mistakes and provides valuable insights on how to avoid them.
The first way people trip up is their reluctance to seek professional help. We understand that one of the hardest parts about working with a financial advisor is stepping through the door for that first meeting. Many people are unsure of what to expect and fear the unknown, which can lead them to make uninformed decisions. Instead of leaning on a professional, they’ll often rely on advice from friends or family, who may not have the same financial situation, leading to misguided choices.
Similarly, mistakes are often made by listening to the wrong people. Whether it’s a coworker suggesting a hot stock or a relative offering investment advice, taking financial guidance from unqualified sources can be detrimental. To be successful long-term, you need to understand your own financial situation and seek advice tailored to your specific needs. Not all the information you hear is wrong, it just might not be suited for you.
Making decisions too quickly is another pitfall. Whether it’s accepting a buyout package without understanding the tax implications or diving into an investment without thorough research, hasty decisions can lead to financial setbacks.
On the flip side, taking too long to make decisions can also be problematic. Waiting too long to make necessary adjustments can result in missed opportunities. The goal is to balance caution with timely action to help achieve the best outcomes.
Each of these mistakes is avoidable with proper planning, but don’t linger on the mistakes you have already made. Take a forward-looking approach to your finances and make your next decision one that pushes you forward.
Here’s some of what we discuss in this episode:
• People who don’t seek out help when they should have, especially for big financial decisions like pensions and Social Security.
• Examples of how listening to the wrong people can lead you astray.
• Don’t make decisions too quickly without thinking through the options and consequences.
• Procrastination and dragging your feet on decisions can be costly as well.
Information presented in our podcasts is considered current as of the created date. Over time, some information presented may become stale. We recommend you consult with your Financial Professional before making any changes based on information contained here.
Johnson Brunetti is a marketing name for the businesses of JB Capital and JN Financial.
Investment Advisory Services offered through JB Capital, LLC. Insurance Products offered through JN Financial, LLC.
The guarantees provided by any type of insurance contract are based on the claims-paying ability of the insurance company.
Related Resources
-
Today’s Retirement Reality
Almost one-third of Americans lack confidence that they will have enough income to cover basic monthly expenses throughout retirement. As the economic landscape continues to shift, more individual… -
How to Prepare for Taxes in Retirement
No matter how well you’ve saved for retirement, taxes are an unavoidable part of the process. The good news is that with the proper tax planning, you can minimize this burden and keep more of what… -
What Are Some Unexpected Retirement Expenses to Look Out For?
Today’s question is one we help our clients navigate all the time: What expenses might I be responsible for as I enter retirement? Nicholas J. Colantuono, CFP® joins this week’s Money Wisdom Qu… -
Essential Steps for a Robust Estate Plan
When planning for retirement, one crucial element that often gets overlooked is estate planning. Creating an estate plan can ensure that your assets, legacy, and loved ones are protected. While es… -
How Can I Generate Low-Tax or Tax-Free Retirement Income?
Today’s question is: What steps can I take to generate low-tax or tax-free income in retirement? First and foremost, it’s essential to have a tax plan – one that fits within the context of your… -
Will I Have Enough Income to Retire?
Once you’ve reached the retirement mountaintop, you may be uncertain about how to navigate the descent. Have you saved enough? Will your money last as long as you do? If you’re like most of the pe… -
The Right Order to Build Your Financial House
You wouldn’t design a house that leaves you exposed to outside elements, so why do the same when building your financial house? A well-constructed house first and foremost needs a strong foundatio… -
Identity Theft: What to Do If Your Identity Is Stolen
In the digital age, the threat of identity theft is at an all-time high. Sophisticated cybercrime tactics and schemes have left us more vulnerable to online scams than ever before. So, what can… -
Don’t Let Taxes Derail Your Financial Plan
A retirement plan that doesn’t consider the impact of taxes can only get you so far. Implementing tax-efficient strategies early on is critical to lowering your lifetime tax liability. After all, … -
The Road to Retirement – Don’t Go it Alone
Achieving the retirement you’ve always dreamed of often requires careful planning. While the do-it-yourself approach may be difficult to shake, consider the benefits of seeking professional advice…
