Financial Decisions You Will Regret Forever
July 27, 2016
When it comes to your money, we have all had a regret at some point. The important thing to remember is that there are small regrets such as purchasing those new shoes that you don’t need versus making a major decision about your money that could hurt you in the long-term. Below is a list we have gathered of financial decisions that you will regret forever.
1. Borrowing from your 401k – Taking a loan from your 401(k) may seem like the only option but it is a bad idea for many different reasons. Not only will you be paying interest on that loan but your likely to reduce or suspend new contributing during the period that you are repaying it back. This means you are short-changing your retirement and also missing out on employer matches and investment growth.
2. Claiming Social Security early – You can start taking benefits at 62, but it isn’t recommended. Ideally you should wait until your full retirement age to pull your benefits. If you can wait even longer it can be even better for you. If you claim early, your check will be reduced by a percentage for the rest of your life.
3. Paying the minimum on credit cards – It can take you years and years to pay off a credit card if you are only paying the minimum payment and the majority of that will be interest. If you are using a credit card and can’t pay off the balance in full, then you are living beyond your mean.
4. Putting off saving for retirement – Don’t wait to start saving. Many people use the excuse that they will start saving when they make more money. Start saving now. They earlier you begin the better.
5. Bankrolling your kids – We all want our kids to have the best, but footing the bill at the expense of your own retirement savings could come back to haunt you. You cannot take out a loan for your retirement living, but you can for college.
If you would like help on any of these or just want sound financial advice, please contact our office for a free initial consultation at 763-231-9510. We would love to help you get on track to financial independence.