Advice offered by Marc Hébert, President of The Harbor Group Inc., a certified financial planner. If you have any questions about finances or would like to suggest a future topic, send an email to [email protected]. our portfolios. The National Retail Federation predicts that the average American will spend $ 92.12 on Halloween festivities. While spending on Halloween isn’t particularly scary, there are a host of other scary things people do with their money. Here is a list of things that give me shivers: Having no emergency reserves. According to a recent Bankrate poll, about 25% of Americans say they have no emergency savings. Waiting to Fund Education Fees Funding decisions for your child’s post-secondary education should not be made while they are attending your child’s high school graduation. Decide early in your child’s life what kind of education costs you would like to pay and how best to achieve that goal. Inadequate Insurance It is a terrifying burden to have used all your savings to settle a lawsuit that proper insurance would have covered. Having the right insurance can make the difference between a comfortable retirement and working well beyond your desired age. Consider an umbrella policy to cover liabilities beyond standard auto and home coverage. Disability insurance is important in case you cannot work. The last big area is life insurance. This can help protect a stream of income that would otherwise be used for purposes such as paying off a mortgage, saving for college, or financing child care expenses. Bad Debt Management Use credit wisely. Have a repayment plan. Seek advice if necessary. There are a few scary examples of debt misuse, such as car title loans, payday loans, rent with purchase option, and bank overdraft fees. Following your peers instead of doing what might be in your own best interests could lead to financial setback. Take the time to develop an appropriate investment strategy for yourself. This will help you avoid costly and emotional mistakes when the market kicks a curve at you. Don’t Diversify Your Portfolio Holding on to all the stocks your employer gives you and never selling them is not the way to go. Neither of them buys all of the same type of securities, such as large US growth stocks. Do your research and be sure to diversify asset types and geographic regions. No Estate Plan No estate is too small not to have a plan. A will is always a good first step. A lawyer can help you prepare other documents, such as powers of attorney for finance and health care and living wills, at the same time. These documents are important in case you cannot make decisions on your behalf. Neglected retirement savings Speaking of savings, workplace pension plans are great places to save money while also taking advantage of tax benefits. The possibility of receiving a corporate reward can increase your savings even further. If your business doesn’t offer a retirement plan, traditional IRAs or Roth IRAs could be the perfect alternative. Relying on the Lottery to Fund Your Retirement Gambling and dreaming of winning the lottery can be fun, and Americans spend over $ 73.5 billion a year doing it. But you shouldn’t rely on such plans to fund your retirement. Since some pensions now span 30 years or more, future costs must be carefully estimated. In addition, with inflation leading to even higher costs, it is necessary to start saving money as soon as possible.
Advice offered by Marc Hébert, President of The Harbor Group Inc., a certified financial planner. If you have any questions about finances or if you want to suggest a future topic, send an email to [email protected].
Halloween doesn’t just bring out traps, ghosts, ghouls and monsters, but also our wallets. The National Retail Federation predicts that the average American will spend $ 92.12 on Halloween festivities. While spending on Halloween isn’t particularly scary, there are a host of other scary things people do with their money. Here is a list of things that give me shivers:
Do not have an emergency reserve
Whether it’s a major auto repair, job loss, or some other unforeseen expense, some people don’t have an emergency reserve to act as a buffer against financial hardship. According to a recent Bankrate poll, about 25% of Americans say they have no emergency savings.
Awaiting Tuition Fee Funding
Funding decisions for your child’s post-secondary education should not be made while they are attending your child’s high school graduation. Decide early in your child’s life what kind of education costs you would like to pay and how best to achieve that goal.
Inadequate insurance
It’s a terrifying burden to have all your savings used to settle a lawsuit that proper insurance would have covered. Having the right insurance can make the difference between a comfortable retirement and working well beyond your desired age. Consider an umbrella policy to cover liabilities beyond standard auto and home coverage. Disability insurance is important in case you cannot work. The last big area is life insurance. This can help protect a stream of income that would otherwise be used for purposes such as paying off a mortgage, saving for college, or financing child care expenses.
Poor debt management
Use credit wisely. Have a repayment plan. Seek advice if necessary. There are scary examples of the misuse of debt, such as car title loans, payday loans, rent with purchase option, and bank overdraft charges.
Following the investment methods
There are a lot of popular investing ideas on the internet these days. Following your peers instead of doing what might be in your own best interests could lead to financial setback. Take the time to develop an appropriate investment strategy for yourself. This will help you avoid costly and emotional mistakes when the market kicks a curve at you.
Do not diversify your portfolio
Keeping all the inventory your employer gives you and never selling it is not the way to go. Neither of them buys all of the same type of securities, such as large US growth stocks. Do your research and be sure to diversify asset types and geographic regions.
Lack of estate plan
No area is too small not to have a plan. A will is always a good first step. A lawyer can help you prepare other documents, such as powers of attorney for finance and health care and living wills, at the same time. These documents are important in case you cannot make decisions on your behalf.
Neglected retirement savings
Speaking of savings, workplace retirement plans are great places to save money while enjoying tax benefits. The possibility of receiving a corporate reward can increase your savings even further. If your business doesn’t offer a retirement plan, traditional IRAs or Roth IRAs could be the perfect alternative.
Counting on the lottery to finance your retirement
Playing and dreaming of winning the lottery can be fun, and Americans spend over $ 73.5 billion a year doing it. But you shouldn’t rely on such plans to fund your retirement. Since some pensions now span 30 years or more, future costs must be carefully estimated. In addition, with inflation leading to even higher costs, it is necessary to start saving money as soon as possible.
