Don’t Make These Mistakes

With all of the financial and tax laws, changes to the laws, and life changes it is almost impossible to stay on top of everything. We have to constantly assess our situation all of the time. Here are a few things to consider:

Wills, Beneficiaries and Estate Matters: Did you recently get married, have children, or get divorced? If so, then you need to make sure that your will is up to date, along with your beneficiaries of life insurance, retirement, and other financial accounts.

Required Minimum Distributions: Once you turn age 70 ½, you need to start taking distributions from your IRA’s the following year; the first one by April 1st and the next by December 31st. If you don’t do this then you may be subject to a 50% excise tax on the amount that should have been withdrawn.

Retirement Accounts: Are you contributing to your retirement accounts at work or through your business? If not, then what are you waiting for? You may be losing out on employer matches and also tax savings. The simplest way to start is to contribute a small amount, such as 1% of your income and then increase the percentage over time. If you are already contributing to a retirement account, then try to increase your contributions.

Social Security: The biggest mistake with social security is the temptation to start receiving your benefits at age 62. Unless you have known health issues, the biggest risk is actually living too long and receiving a small benefit for the rest of your life. Let us know if you need us to talk you out of this!

No Action: This applies to absolutely everything and not just financial matters. By far, the largest mistake is not taking any action to help your financial situation. Don’t let this happen to you!