top 5 financial mistakes to avoid in your 40s!
TRANSCRIPT
Not Planning for
Contingencies
#1 Mistake
Plan for the unexpected! Owning the proper
amount of disability and life insurance is key to
ensuring your family is financially secure if
misfortune strikes.
#1 Mistake
Saving Like You’re
Broke!
#2 Mistake
How do you save more? A few changes to your
monthly dining out and shopping budget may
free up another 5% to10% of pre-tax income to
be earmarked for retirement.
#2 Mistake
The reality is that saving 4% of your income on a
pre-tax basis is not going to cut it! You’re not in
your 20’s – don’t save like you are!
#2 Mistake
Getting Too
Conservative Too Soon
#3 Mistake
You’re still young! Your investment asset allocation should
be based on your time horizon, financial goals and
appropriate risk profile.
#3 Mistake
Stick with your long-term investment plan and
DON’T TRY TO TIME THE MARKET!
#3 Mistake
#4 Mistake
Using Your 401(k)
like an Emergency Fund
#4 Mistake
If you withdraw $50,000 from your 401(k) and repay it
with interest over the next 5 years, don’t fool yourself into
thinking you will make yourself whole. You can never
make up the lost compounding or the potentially higher
investment returns on your 401(k) investments.
#4 Mistake
Bar graph here maybe…
#4 Mistake
When investing in the stock market, time is the most
powerful tool. Losing time will likely mean less money
and fewer choices during retirement.
#5 Mistake
Using Your 401(k)
like an Emergency Fund