- ORIGINAL NEWS
Here are some big money blind spots you need to avoid, advisors say
- SUMMARY
**Financial Pitfalls to Avoid for a Secure Future** Navigating personal finances can be overwhelming, and it’s all too easy to overlook crucial aspects.
Financial experts highlight several common blind spots that can compromise your economic well-being: **1. Credit Scores:** Your credit score plays a significant role in determining your ability to obtain loans and secure favorable interest rates.
It’s crucial to understand your credit history and make conscious efforts to improve your score if necessary.
**2.
Retirement Savings:** Underestimating retirement expenses is a grave mistake.
Don’t assume your living expenses will automatically decrease upon retirement.
Factor in potential costs for travel, hobbies, and unforeseen health expenses.
**3.
Estate Planning:** Wills and trusts are essential for ensuring your assets are distributed according to your wishes after your passing.
Without proper planning, the court may decide the allocation of your property, potentially ignoring your intentions.
**4.
Emergency Savings:** Unexpected events can derail your financial stability.
Having an emergency fund equivalent to at least three to six months of living expenses provides a safety net in case of job loss, health issues, or other emergencies.
**5.
Tax Withholding:** Understand how taxes are withheld from your paychecks.
Aim to withhold enough to avoid owing money at tax time, but not so much that you end up with a large refund.
Reviewing your W-4 form regularly can help adjust withholdings if necessary.
- NEWS SENTIMENT CHECK
- Overall sentiment:
positive
Positive
“Wills can also stipulate who will take care of your kids and oversee your money until your children turn 18.”
“Planning for such a grim event isn’t fun — but it’s essential, said Barry Glassman, CFP, founder and president of Glassman Wealth Services.”
Negative
“Consumers often don’t understand the importance of their credit score, said Kamila Elliott, CFP, co-founder and CEO of Collective Wealth Partners based in Atlanta.”
“Without such a legal document, state courts will choose for you — and the outcome may not align with your wishes, he said.”