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
-
Most Asked Social Security Questions
It’s no question that Social Security plays a crucial role in retirement planning, helping to provide a stable income stream for millions of recipients. In this week’s Better Money Boston with … -
Podcast Episode 402: How Often Should You Meet with Your Financial Advisor?
A good relationship between a client and their financial advisor relies on clear communication and regular check-ins to ensure everything is on track. In this episode of the Money Wisdom podcast, … -
Think Like the Rich
As you enter retirement, your financial focus shifts from growing your wealth to preserving your assets and generating income. In this stage of life, adopting the mindset of the wealthy can go a l… -
Leaving a Lasting Legacy
Estate planning can be a difficult yet necessary conversation to have with your loved ones. Everything from the distribution of your assets to your wishes regarding end-of-life care is up for disc… -
Are My Social Security Benefits Taxable?
If your total combined income exceeds certain thresholds, up to 85% of your Social Security benefits may be taxable. Understanding how Social Security is taxed can help you make informed decisions… -
Right Time for Social Security
Contrary to popular belief, waiting to claim Social Security until age 70 to get the maximum benefit is not the best decision for everyone. So, when is the right time? In this week’s Retire Wis… -
What is the Social Security Fairness Act?
You may have heard about the Social Security Fairness Act, which was signed into law on January 5, 2025. But what is it and who does it help? In this week’s Money Wisdom Question Series, Ian Fe… -
Finding Your Way on Taxes
Taxes can be confusing on any given day, but in retirement, they require even more attention and understanding. In fact, taxes are at the core of nine out of every ten conversations we have with t… -
How Can I Transition My Business Value into Money I Can Use?
Today’s question is a crucial topic for many of our clients who are business owners or have significant assets tied up in a business: How can I convert the value of my business into income for my … -
How to Effectively Plan for Healthcare in Retirement
As you approach retirement, the reality of rising healthcare costs becomes clearer. When planning for this significant expense, it’s important to consider all aspects – from prescription drug cost…
