Financial decisions are a lot easier with the benefit of hindsight. Here are some common mistakes people have made this year and how hindsight could have helped them in 2020.
Click the timestamps below to skip to a specific topic in the episode.
The Combination and Key Points:
Have you ever looked back on a financial decision and thought, “I wish I would have done that differently”? Decisions about money are a lot easier with the benefit of hindsight. On this episode of Unlocking Your Financial Future, we look at five common money mistakes people have made this year.
Getting out of the market
When the market went down earlier this year, some people got scared and took their money out. When the market rebounded, they kicked themselves for selling.
“People get emotional, and rightfully so,” said Ben. “This is their money. They worked hard for it.”
But instead of panicking, they should have consulted a financial advisor and used them as a sounding board.
Not knowing your risk factor
Do you know the risk factor for how your money is invested? Our team uses software to help you understand your investments, set an expectation of risk and explain how your portfolio is affected.
Not knowing your social security options
If you draw social security and wish you hadn’t taken it so early, you can make a change within the first 12 months. Just pay back the money you took out, reverse your application and start over again. Not everyone knows that’s an option.
Not putting money in a Roth IRA
Did you put money in a traditional 401K instead of a Roth IRA? It might be time for a Roth conversion. Our team can help.
Retiring too early and going back to work
Did you retire too early and discover that you need to go back to work and make more money? You may have trouble finding a job.
“This is a tough one,” said Ben. “It’s critical to sit down with someone and have a plan.”
To hear more, you can listen to the full episode or use the timestamps below to find a specific segment.
[2:09] – Getting out of the market
[5:20] – Not knowing your risk factor
[8:39] – Not knowing your social security options
[11:04] – Not putting money in a Roth IRA
[12:28] – Retiring too early and going back to work
Thanks for listening to another episode of Unlocking Your Financial Future. We’ll talk to you again next week!