Money. It’s hard to get and easy to lose. It doesn’t take long for the wealth you’ve accrued to disappear if you don’t manage your money correctly or have a plan to guard your assets against sudden disaster.
Traps like the ones revealed below could easily impede your financial security. Planning ahead can protect you and your family from getting caught.
The more you have, the more you spend — or so the saying goes. But not paying close attention to your cash flow may prevent you from saving enough money for your future. Manage your income by creating a spending plan that includes saving and investing a portion of your pay. Your financial professional can help identify planning strategies that will maximize your savings and minimize your taxes.
With the easy availability of credit, it isn’t hard to explain how many people rack up high credit card balances and other debt. Short-term debt can become long-term debt if you’re paying only the minimum amount toward your balances. If you can’t pay off your credit card debt all at once, consider transferring the balances to a card with a lower interest rate.
Your life, your property, and your ability to work should all be protected. Life insurance can deliver income for your family if you die. Homeowners & automobile insurance can help guard you if your home or car is damaged or destroyed and provide liability coverage if someone is injured. Disability insurance can protect your income if you’re unable to work.
A financial windfall is great, but it also can be risky. Without solid advice on handling and investing the money, you could find that your inheritance disappears in a much shorter time than you would have thought possible. Your Wealthnest advisor can help you come up with a plan for managing your wealth. Setting aside a share of the money to spend on a trip or other luxuries while investing the rest may be one way to reward yourself and still preserve the majority of your assets.
Reviewing your investments to make sure they’re performing as you expected — and making changes in your portfolio if they’re not – is essential. But it’s also essential to periodically review your investment strategy. You may find that your tolerance for risk has changed over time. You’ll also want to assess the tax implications of any changes you plan to make to help minimize their impact.
If you are not contributing the maximum amount to your employer’s retirement savings plan, you’re giving up the benefits of pretax contributions & potential tax-deferred growth. Making the most of your plan contributions can start you on your way to a comfortable retirement — hopefully with no traps along the route.
One of the best ways in avoiding these financial pitfalls & traps is to speak with a professional. Both myself and my business partner are fiduciaries as well as CERTIFIED FINANCIAL PLANNERS®. Our experience can help you avoid these financial traps that we have seen affect some many others we know through the years.
Michael McGinley, CFP ®
Comprehensive Wealth Manager | Tax Advisor
Chandler, AZ 85226
Visit us at www.wealthnest.com or call 480-699-5275
Securities and Advisory services offered through LPL Financial, member FINRA/