Whats Holding You Back?

When it comes to financial matters, it can sometimes be difficult to truly live a “financially free” life. Sometimes, people are just too overburdened with debt to worry about anything else. Other times, people just can’t seem to get back on their feet or caught up on bills no matter what they do. If you are struggling financially, it is probably because you’re committing one of the “cardinal sins” of the financial world. Even if you’re not struggling, you could still be committing one of these sins, which will catch up to you eventually.

Mistake #1: Failing to Budget

One major mistake that can really mess you up financially is not budgeting your money. If you don’t have a spending plan and, instead, just buy things at random and hope you’ll have enough to make it through to the next paycheck, you’re making a grave error.

Not budgeting isn’t going to get you anywhere except broke! As soon as possible, sit down and determine how much you make, what your most important expenses are, and how much money you have left over to save or spend. Then, stick within the “rules” of your budget. You’ll never get off track!

Mistake #2: Not Tracking Your Spending

In addition to having a budget, you also need to make sure that you know exactly how much money you are spending and what you are spending it on. People who don’t know where their money goes are people who will never learn from their mistakes. They’re also people who are more likely to overdraft and pay the hefty fines associated with that error.

Instead of just spending freely and “guesstimating” how much money you have left at a given time, keep detailed track of all your purchases and how much you spend, and what you have left. Not only will this make it easier to keep track of your money, but it can also be a helpful way to determine areas of spending where you need to cut back.

Mistake #3: Not Stashing Money in Savings

You also have a problem if you’re not putting money into your savings account on a regular basis. No matter how hard it is, it is important that you save SOMETHING from each paycheck. Even if you can only manage a small amount of savings, that’s better than nothing, and it is possible to build your savings a little at a time.

In addition to having a standard savings account, you should also be saving for retirement, no matter how young you are. That day comes sooner than you think and truly is something you have to prepare for ahead of time.

All of these financial mistakes can hold you back from the lifestyle and even the future lifestyle that you want and deserve. Don’t let that happen to you! Start taking steps today to get yourself and your money back on track and to ensure a better, brighter future for yourself and those you love.

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How to Protect Your Retirement Funds

It’s extremely important to tread carefully when it comes to all matters related to your retirement. There are so many scams and cons out there that, if you aren’t careful, you can fall victim to and end up losing everything you’ve worked so hard for in the process.

One of the best things you can do to protect yourself and your funds is to choose a trustworthy financial advisor. Look for someone experienced and well-educated who will always put your best interests first. By reading online reviews, researching any potential candidates, and always making decisions carefully, you can find the perfect person to help you to make the most of your retirement funds and to avoid scams.

And, believe it or not, scams are increasingly common. Not only are there “investment advisors” who don’t know what they’re doing, who charge too-high fees, and/or who will sometimes outright steal your money, there are also investments that are scams from the start. Generally, anything that

promises huge benefits with very small investments is worth checking out a little further, as is anything that sounds too good to be true.

It doesn’t help matters that most people who retire are considered “elderly,” making them favorite targets of scam artists. The good news is, though, that if you do find the right help, you can make wonderful investment choices that will benefit you both now and in the future. So, don’t take any chances; be serious about finding the right retirement help, and, if you ever have questions or concerns, voice them. You can never be too careful when it comes to protecting the retirement funds that you have worked so hard for.  #InvestmentAdvisors

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Common Investor Mistakes to Avoid

Look, we all make mistakes as investors, but some of them are worse than others. While some mistakes can cause only mild setbacks, others can lead to ruined portfolios, lots of lost money, and other big problems. Thus, it’s important to educate yourself on smart investing strategies, hopefully with the help of a professional financial advisor, and to recognize your potentially big blunders early on so you can fix them before they wreak serious havoc. To help you do just that- avoid major investing consequences- make sure you avoid these all-too-common mistakes:

Mistake #1: Chasing a Stock with Reckless Abandon

We’ve all fallen in love with a particular stock. Some stocks just have a way of luring us in through careful marketing, having lots of promise, or just being hot and talked about. However, the very

stocks that are so alluring and popular today can be the ones that end up in severe capital losses increases later if the popularity of the stock falls. Trends come and go (Myspace, anyone?), so be mindful of that and don’t stay devoted to a stock just because it’s “cool” or you’re into it; instead, look at financial figures and make smart, well thought-out decisions about when to let a stock loose.

Mistake #2: Not Listening to Contrarians

All kinds of people offer up opinions (often unsolicited) about what you should and shouldn’t do stock-wise. Sometimes, though, it’s the ones you least expect who can offer the best advice, like contrarians. They, for example, invested heavily during the economic downturn of 2009, a time when everyone seemed to be steering clear of the stock market, and they ended up, to everyone’s surprise, coming out on top big time. While it’s important to listen to the major, mainstream voices and advice in the investment world, be sure to consider a wide range of educated opinions and even to take some risks here and there. This is all made much easier with the help of an investment advisor, who can enable you to see which “out there” investment strategies might actually be pretty solid and what risks are worth taking.

Mistake #3: Not Rebalancing Your Portfolio

You never want to let your investment portfolio get too stale or too set in its ways, so be willing to change things up from time to time. Regularly take stock of how your stocks are doing, and be willing to make changes as necessary, and also make smart additions to your portfolio on a regular basis to keep it fresh and diverse.

By following these tips and getting the right investment help, you should see nothing but good come from your investment efforts.  #InvestWisely

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Standard Savings vs. Investments

In an ideal world, by the time a person is ready to retire, he would have plenty of money stashed away in savings, a good retirement plan in place, and a nice investment portfolio. Unfortunately, however, that’s just not reality for the vast majority of people.

Many people, among realizing their needs and shortcomings come retirement time, will start to make riskier investments in the hopes of getting into a better financial position. Sadly, more often than not, this type of behavior usually just makes financial problems worse, instead of better.

Investments are important, of course, but even the ones that seem the most fool-proof can carry large

potential risks. Plus, people are more likely to take risks when they are feeling desperate...which is the absolute worst time to take them. As such, if you ever have to choose between saving money and making investments, saving is the way to go. Investments can be a very good thing, but if you can only do one or the other, the choice is clear.

The absolute best strategy is, of course, to start saving early in life and to make a few investments along the way. However, even investments can be tied to a solid savings account. For example, many people benefit greatly from compounding, i.e. Taking the money they have in their retirement savings and re-investing it.

Compounding can take a while to really show a profit, though, so if you’re starting your savings later than you would like, it can be best to skip it and just focus on saving.

The bottom line is that if you’re not yet close to retirement, start saving now. Once you’ve got a good savings going and can afford to take a few risks here and there, make smart investments, often utilizing funds from your own savings in the process. If you’re closer to retirement, you may have “missed the boat” in terms of investing. When that’s the case, just focus on the safe bet: saving

Hopefully, you still have time and can start saving and investing now. But, if you did wait a little too late, don’t give up. Get a good savings going, and you should probably still be okay!

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Easy Tips for Increased Wealth

More money. It’s something all of us want but that few of us know how to get. While there are all kinds of strategies out there for keeping more money in your pocket, you really don’t have to do anything big and major in order to see an increase in your funds. Just doing a few simple things can increase your wealth without majorly altering your lifestyle.   

Buy Stocks

A lot of people think that the stock market and how it works is beyond them, that it’s something only rich or very financially knowledgeable people bother with, but that’s not true at all. Stocks are something that all people should be investing in since they often warrant big returns. You don’t have to make huge investments in the stock market either; simply putting $5 or $10 into a major company or another business that performs well is enough to get you started. For best results, seek to invest in practically foolproof stocks, like stocks offered by big name companies. And, if you’re still feeling a little wary about navigating the stock market yourself, find a qualified financial or investment advisor and ask for some pointers and advice.

Cut Out Credit Card Debt

Constantly trying to “catch up” on credit card payments is one of the easiest ways to find yourself constantly broke. If you’ve gotten in over your head with credit card debt, it’s time to take action. Whether you talk to your credit card provider to work out a new plan, take out a loan to pay off your debt, or just pay as much as you can, a little at a time, the sooner you banish big credit card debt, the sooner you’ll notice increased cash flow.

Take Advantage of Insurance Discounts

Did you know that most insurance companies offer a wide range of discounts for those who qualify? Car insurance companies, for example, often hand over discounts for things like having more than one type of insurance through the same provider, not getting into any accidents within a set time period, or even pursuing an education and making good grades. Unfortunately, a lot of people miss out on insurance discounts because they don’t know about them. If you could stand to save on insurance (and who couldn’t?), talk to your insurance provider about discount options and make sure you take advantage of the ones for which you qualify.

Obviously, there are a lot of different ways to bring more money into your life. Take advantage of these options and keep your eyes peeled for other ways to save more and spend less. You’d be surprised at how many wonderful options there are for increasing your wealth.

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Letting Go of Losing Investments

There’s a famous saying that basically states that you have to know when to “cut your losses.” That means that there does, sometimes, come a time when you have to own up to a less than perfect choice and the consequences that go along with that choice. Plus, sometimes, things just don’t go the way they were expected to, and you have to be willing to give up, even if it goes against your nature. These rules apply strongly to investments. No matter how careful of an investor you are, you are going to undoubtedly have some poor performers or downright losers in your portfolio, and it’s important to know when to cut them loose.    

Letting go of those losing investments doesn’t always mean losing money, however. In fact, sometimes it means just the opposite. You can often sell poor stocks for a nice tax break or a capital gain. Plus, just because you’ve given up on a particular investment doesn’t mean everybody else has. Those stocks and other investments that aren’t doing you any good may be just what some other buyer is looking for, so don’t hesitate to sell if a particular investment just isn’t getting you anywhere.

Of course, if your portfolio is filling up with lots of losers, instead of just one or two, then you’ve got bigger problems on your hands. To avoid ending up with a bunch of losing investments in the first place, invest smart. Call on an investment advisor for assistance and mostly avoid individual stocks and instead go for a diverse mix of exchange traded funds and mutual funds. With the right guidance, you might find that you don’t have to worry about cutting your losses because you don’t have any to begin with.

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Investing: Men vs. Women

A recent study set out to find out whether men or women were better at investing. And, while people often joke that women are bad with money, the study proved otherwise. It showed that women’s investment accounts fared significantly better than those of their male counterparts by 2 percentage points or more on average.

Fortunately, the study didn’t just discover these results and then end its research right then and there. It also sought to find out why women’s investing skills tended to be better. The results concluded that women’s accounts fared better because the women were more cautious and conscientious with their accounts than their male counterparts. They didn’t trade as often, limited their portfolio turnover, and shunned individual stocks in favor of more fool-proof choices.   

The proclivity toward individual stocks, for the record, proved to be one of the men in the study’s greatest downfalls. Many people believe that individual stocks are good choices since they can be basically cherry-picked to suit the client and then traded for a nice profit in many cases. However, these types of investments can often be risky and unlikely to pay off, making them more dangerous and causing the males in the study to fare far worse than the women.

The takeaway from the study shouldn’t be that women are smarter or more responsible than men. It also shouldn’t be to avoid individual stocks. It’s just a lesson in being careful with your money, very thoughtful about the decisions you make, and ensuring that you have a wide and diverse portfolio that isn’t too reliant on one particular type of investing. If you can keep those tips in mind, it doesn’t matter if you’re male or female- either way, you have a great shot at investing smart.

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Tips for Becoming a Smart Investor

Chances are, someone- whether it’s a parent, a friend, a work colleague, or a financial advisor- has encouraged you to invest your money. You might choose to invest via stocks and bonds, through savings accounts, through an IRA account, or through some combination of these and other investment options. Whether you’ve heeded the advice you’ve been given or haven’t yet gotten around to investing, you should

know that, no matter where you are in the process, there are a few “golden rules” to follow when it comes to investing.

See the Big Picture

All too often, when investing, people tend to get caught up in the small details. Some people just can’t stop nitpicking data points, which aren’t really all that important in the grand scheme of things. Others carefully examine the strengths and weaknesses of a particular stock or a specific type of investment. Then you have those who are so worried about losing money in the short-term that they refuse to see the bigger picture.

In fact, though, the bigger picture is what it’s all about. You are never going to find an investment option that is 100% foolproof or that hasn’t undergone some bad times in its past. Instead of narrowing in on the immediate risk or what could go wrong, try to think about how your investment will affect you in the long-term. If you’re having trouble seeing the big picture, a company that provides investment services can be of great use to you.

Have Specific Goals in Mind

It’s hard to invest and save when you don’t know why, exactly, you’re doing it. If you’re just investing because other people have told you to, then you’re likely going to lose momentum and give up long before you should.

If you have very specific goals in mind, however, such as retiring with a certain amount of money, paying a child’s college tuition, or even taking a dream vacation without incurring financial loss, you’ll be a lot more likely to stick to your saving and investment goals. Again, however, just make sure those goals are inline with the “big picture” discussed above.

Invest at the Right Time

When you first start investing, it can be tempting to jump headfirst into a bunch of investments. In truth, though, you really shouldn’t invest all at once.

Stocks and other types of investments go up and down in terms of their risk and value. Thus, learning how to strike when the iron is hot is of the utmost importance. However, you can’t spend too much time analyzing or you risk, as mentioned, not seeing the bigger picture. For this reason, it is imperative to hire a financial advisor to help you to know when to make what investments. In fact, the right financial advisor can help you with investing in general so that you always make decisions that will ultimately benefit you.

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File Taxes Independently

MoneyControl.com released a helpful list of tax and investment tips for 2014. One of those tips might just surprise you too! It advised taxpayers to resist the “ease” of joint filing and instead to file independently. Every single member of every single family In America was advised to follow this advice. MoneyControl.com advises establishing income taxes for children and spouses who wouldn’t otherwise qualify by giving them financial gifts.  

Having everyone in your family file will get everyone on the “financial” radar and might just lead to reduced taxes for the family as a whole. And while this little tip isn’t a bad idea, know that there are many other things you can be doing to improve your family’s financial state, such as making smart investments.

For help making investments or knowing what to invest in, brokerage services are a great resource. Platinum Financial Associates, located in Naperville, offers a wide range of brokerage services to assist you no matter where you currently stand financially. Give the friendly financial experts a call and watch your family’s money multiply!

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Invest Wisely

Lifehacker.com recently released a list of tips and strategies for making smart investments. While many different ideas were presented as part of the list, some of the best included setting up strong investment accounts and investing in low-cost stock index funds.

When it comes to investment accounts, you always want to choose tax-savvy accounts, such as 401ks and Roth IRAs, rather than accounts that face heavy taxation. Similarly, investing in bond funds can be smart, especially if you’re not someone who is very comfortable taking risks in the stock market.

If any (or all!) of these tips are a little confusing to you, know that you’re not alone. Many people have trouble navigating and making sense of the different investment options they have available. Fortunately, there are financial firms that offer investment services to help you make the smartest choices possible. You can find great investment services at Platinum Financial Associates of Naperville, so give the company a call today!

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