Ten Biggest Mistakes people make with their Money
...and minimize estate fees and taxes. This requires thinking about your death, and how proper planning will make sure that your loved ones will be taken care of after your death. Rule of thumb, take your current monthly expenses, Solution: Ask your Financial to prepare an Estate Plan for you. Make sure the adequate amount of insurance is taken, and that you are not over insured, in costly products 5. They procrastinate about making financial decisions. There is never a better time than now to start a financial plan. The biggest enemy of financial success is procrastination. Why wait for doing the right thing? Once you know what is the correct and decent thing to do, we recommend that you act on it promptly. Solution: Once you know what is the correct and decent thing to do, we recommend that you act on it promptly. Book an appointment with your Financial Advisor. Seeing your Financial Advisor is as important as seeing your doctor. Both are there to look after your interests. 6. People look for a guarantee of their dollars rather than the preservation of their purchasing power. “Guarantees” can be misleading, because you are sacrificing long term growth of investment value. Solution: Assess your requirements for guarantees, keep your investment time frame in mind, if you are investing more than five years, than a guarantee is meaningless. . 7. People do not fully comprehend the massive erosion of their personal financial situation due to taxes and do not take maximum advantage of many legal tax reduction strategies. There are numerous tax-preferred strategies but most focus on just one, their RRSPs. As important as a investment plan is a tax plan. Just going to a tax preparer before April is not good enough. To get the best advantage make sure you are dealing with a tax planner – the difference; a tax preparer fills informs, a tax planner thinsk about how to save your taxes this year and next year. Solution: Make sure you are seeing a Tax Planner and not a Tax Preparer. And that a thorough analysis is done on yor tax picture 8. They put themselves and their families at great risk by not protecting themselves against catastrophic loss. Conside what would happen if you lost your life, if you became disabled. Solution: Make sure you have adequate insurance, and assess the family history for medical conditions, workplace environment for the need of critical care, and disability insurance. 9. Research regularly tell us that the great majority of Canadians look at investments from a very short term perspective, often just a year or two. This short-term outlook almost ensures that they will buy the wrong type of investment at the wrong time. Very Very important, if you do not have a minimum five year outlook, do not think of it as an investment....