(StatePoint) Financial missteps can have devastating consequences for individuals and families.
As an advisor with CERTIFIED FINANCIAL PLANNER® certification, here are three common financial pitfalls you can help your clients avoid:
kAmkDEC@?8mq25 @?=:?6 25G:46ik^DEC@?8m p C646?E k2 9C67lQ9EEADi^^HHH]47A]?6E^\^>65:2^7:=6D^47A\3@2C5^<?@H=6586^C6A@CED\2?5\C6D62C49^4@?DF>6C\DFCG6JD^47A\3@2C5\7:?2?4:2=\>:D:?7@C>2E:@?\C6A@CE\a_ad]A57Q C6=lQ?@7@==@HQmru! q@2C5 DFCG6Jk^2m 7:?5D E92E b @FE @7 c p>6C:42?D D66< @FE 7:?2?4:2= :?7@C>2E:@? @?=:?6 2E =62DE @?46 2 >@?E9] &?7@CEF?2E6=J[ 2 =@E @7 E9:D :?7@C>2E:@? :D >:D=625:?8[ :?4@CC64E 2?5 6G6? 92C>7F=] %96 DFCG6J F?4@G6C65 E92E bhT @7 p>6C:42?D k2 9C67lQ9EEADi^^HHH]47A]?6E^?6HD^a_ad^_e^325\@?=:?6\25G:46\=625D\>2;@C:EJ\@7\2>6C:42?D\E@\>2<6\C68C6EE23=6\7:?2?4:2=\564:D:@?DQ C6=lQ?@7@==@HQm92G6 =@DE Sad_k^2m @C >@C6 3642FD6 @7 325 25G:46[ 2?5 `gT 92G6 DF776C65 =@DD6D @G6C S`[___]k^Am
kAmu@==@H:?8 325 25G:46 42? 92G6 k2 9C67lQ9EEADi^^HHH]47A]?6E^:?5FDECJ\:?D:89ED^a_ad^_f^:?\47A\AC@76DD:@?2=D\H6\ECFDEQ C6=lQ?@7@==@HQm=@?8\E6C> 4@?D6BF6?46Dk^2m 2?5 5:DCFAE 7:?2?4:2= 7FEFC6D] *@F?86C 86?6C2E:@?D 2C6 A2CE:4F=2C=J =:<6=J E@ G:6H D@4:2= >65:2[ A@542DED 2?5 86?6C2E:G6 2CE:7:4:2= :?E6==:86?46 WpxX 2D 2 C6=:23=6 D@FC46 @7 7:?2?4:2= :?7@C>2E:@?] }62C=J 92=7 @7 p>6C:42?D 2865 ad\cd WcgTX 36=:6G6 @?=:?6 7:?2?4:2= 4@?E6?E D6CG6D E96:C 36DE :?E6C6DED[ 2=>@DE 5@F3=6 E96 C2E6 @7 E9@D6 2865 ce\ec WadTX] pD 2 ru!kDFAm®k^DFAm AC@76DD:@?2=[ J@F 42? AC@G:56 4=:6?ED H:E9 D@F?5[ ECFDE65 7:?2?4:2= 25G:46 2?5 96=A E96> D@CE 724E 7C@> 7:4E:@? @?=:?6 2?5 6=D6H96C6]k^Am
kAmkDEC@?8mu2>:=J 4@?7=:4ED @G6C >@?6Jik^DEC@?8m p>6C:42?D H@C<:?8 H:E9 2 ru!kDFAm®k^DFAm AC@76DD:@?2= 92G6 76H6C 7:?2?4:2=\C6=2E65 4@?7=:4ED H:E9 72>:=J >6>36CD[ 244@C5:?8 E@ ru! q@2C5’D “k2 9C67lQ9EEADi^^HHH]47A]?6E^\^>65:2^7:=6D^47A\3@2C5^<?@H=6586^C6A@CED\2?5\C6D62C49^4@?DF>6C\DFCG6JD^7:?2?4:2=\A=2??:?8\=@?8:EF5:?2=\DEF5J\a_ad]A57Q C6=lQ?@7@==@HQmu:?2?4:2= !=2??:?8 {@?8:EF5:?2= $EF5Jk^2m]” %96 DEF5J DF886DED >2?J A@E6?E:2= C62D@?D 7@C E9:D] ~?6 :D E92E ru!kDFAm®k^DFAm AC@76DD:@?2=D 2C6 >@C6 =:<6=J E@ =62C? 23@FE E96:C 4=:6?ED’ k2 9C67lQ9EEADi^^HHH]47A]?6E^:?5FDECJ\:?D:89ED^C6A@CED\2?5\DE2E:DE:4D^4@?DF>6C\DFCG6JD^7:?2?4:2=\A=2??:?8\=@?8:EF5:?2=\DEF5JQ C6=lQ?@7@==@HQm72>:=J G2=F6Dk^2m 2?5 E96:C DA@FD6D’ C6=2E:@?D9:A E@ 7:?2?46D] %9:D 2AAC@249 96=AD 2=:8? :?5:G:5F2=D’ 7:?2?4:2= A=2?D H:E9 E96 A=2?D @7 E96 A6@A=6 E92E >2EE6C E@ E96>] p?@E96C C62D@? C6=2E6D E@ 6DE2E6 A=2??:?8] r=@D6 E@ b :? d p>6C:42?D 25G:D65 3J 2 ru!kDFAm®k^DFAm AC@76DD:@?2= 92G6 2 H:==[ 4@>A2C65 E@ chT @7 A6@A=6 H9@ H@C< H:E9 2 7:?2?4:2= 25G:D@C H:E9@FE ru!kDFAm®k^DFAm 46CE:7:42E:@? 2?5 adT @7 E9@D6 H9@ 2C6 F?25G:D65] t?DFC:?8 E92E 2? :?5:G:5F2=’D 7:?2?4:2= 2772:CD 2C6 :? @C56C :D 2 4C:E:42= H2J E@ <66A E96 A6246 2>@?8 72>:=J >6>36CD 27E6C E96 :?5:G:5F2= A2DD6D 2H2J]k^Am
kAmkDEC@?8m{6EE:?8 7:?2?4:2= 2?I:6EJ E2<6 @G6C @?6’D =:76ik^DEC@?8m |@?6J :D 2 D@FC46 @7 6G6C\AC6D6?E DEC6DD 2?5 2?I:6EJ 7@C >2?J[ A2CE:4F=2C=J E9@D6 H9@ E6?5 E@ H:?8 :E H96? :E 4@>6D E@ 7:?2?4:2= 564:D:@?D] *@F 42? 96=A J@FC 4=:6?ED 3C62< E9:D 4J4=6 H:E9 2 56E2:=65[ 9@=:DE:4 7:?2?4:2= A=2? E92E 244@F?ED 7@C 6G6CJE9:?8 7C@> 6>6C86?4J 7F?5D 2?5 >@?E9=J 3F586ED E@ =@?8\E6C> 8@2=D] k2 9C67lQ9EEADi^^HHH]47A]?6E^\^>65:2^7:=6D^47A\3@2C5^<?@H=6586^C6A@CED\2?5\C6D62C49^4@?DF>6C\DFCG6JD^7:?2?4:2=\A=2??:?8\=@?8:EF5:?2=\DEF5J\a_ad]A57Q C6=lQ?@7@==@HQmru! q@2C5 C6D62C49k^2m 7:?5D E92E 4@?DF>6CD 25G:D65 3J ru!kDFAm®k^DFAm AC@76DD:@?2=D 2C6 >@C6 =:<6=J E@ 92G6 56E2:=65 A=2?D 2C@F?5 E96:C C6E:C6>6?E[ :?G6DE>6?ED[ :?DFC2?46 2?5 >@C6[ 2?5 E96J 2C6 2=D@ >@C6 =:<6=J E@ C6G:6H E96D6 A=2?D 7C6BF6?E=J] v:G6? E9:D 2EE6?E:@? E@ 56E2:=[ :E’D ?@ DFCAC:D6 E92E >@C6 4=:6?ED @7 ru!kDFAm®k^DFAm AC@76DD:@?2=D C6A@CE =:G:?8 4@>7@CE23=J E92? A6@A=6 H9@ H@C< H:E9 @E96C 7:?2?4:2= 25G:D@CD @C H9@ 2C6 F?25G:D65]k^Am
kAmu:?2?4:2= 25G:D@CD H:E9 ru!kDFAm®k^DFAm 46CE:7:42E:@? 92G6 366? AC@G6? E@ 96=A E96:C 4=:6?ED 2G@:5 4@>>@? 7:?2?4:2= >:DE2<6D 2?5 92G6 2 962=E9:6C C6=2E:@?D9:A H:E9 >@?6J] %@ 86E DE2CE65 @? E96 ru!kDFAm®k^DFAm 46CE:7:42E:@? ;@FC?6J[ G:D:E k2 9C67lQ9EEADi^^HHH]47A]?6E^244@F?E\C68:DEC2E:@?Q C6=lQ?@7@==@HQmru!]?6Ek^2m]k^Am
kAm(:E9 D@ >2?J 7:?2?4:2= EC2AD 2?5 A:E72==D :>A24E:?8 p>6C:42? 4@?DF>6CD[ 36 DFC6 E@ 86E E96 EC2:?:?8 J@F ?665 E@ 36EE6C D6CG6 4=:6?ED]k^Am
kA DEJ=6lQE6IE\2=:8?i46?E6CQmYYYYYk^Am
kAm!9@E@ rC65:Ei W4X sC2K6? +:8:4 ^ :$E@4< G:2 v6EEJ x>286D !=FDk^Am
kAmk:>8 DC4lQ9EEADi^^7665D]DE2E6A@:?E]?6E^E@H??6HD^A=246>6?E]2D9InEl4U2>Aj:5l`_hefU2>Aj=l6?\&$U2>AjCl`fddabce_bhcc]fbQ ^mk^Am