Act Today to Avoid Financial Regrets Tomorrow

Submitted by Edward JonesPrint Story | Email Story

“Regrets? I’ve had a few.” – Frank Sinatra.

Mr. Sinatra, one of the most famous entertainers of the 20th century, did things his way, but he was also familiar with remorse. He’s not alone, of course. We all deal with regrets – and financial ones are among the most troublesome.

Here are the leading financial regrets, according to a recent survey by Bankrate.com, along with some suggestions for avoiding them:

Not saving for retirement early enough: This was the top regret expressed by survey respondents. Saving and investing early for retirement offers you two key benefits. First, the more time you give growth-oriented investments, the greater their growth potential. And second, by saving and investing for retirement early in your career, you will likely need to put away less money each year than you would if you waited until, say, your 40s or 50s. So, if you aren’t already doing so, contribute as much as you can afford to your IRA and your 401(k) or similar employer-sponsored plan. And increase your contributions every time your salary rises.

Not saving enough for emergency expenses: You can’t plan for all expenses. Your furnace might die, your car may need a major repair, you may incur a sizable doctor’s bill – the list goes on and on. If you don’t have the money available to meet these costs, you might be forced to dip into your long-term investments. That’s why it’s important to maintain an emergency fund, containing three to six months’ worth of living expenses, in a liquid, low-risk account.

Taking on too much credit card debt: If you don’t overuse your credit cards, they can be handy and helpful, in many ways. Try to keep a lid on your credit card debt, keeping in mind that your debt payments reduce the amount of money you have available to invest for your long-term goals, such as a comfortable retirement.



Not saving enough for children’s education: This may be perhaps the most difficult regret to address – after all, it’s not easy to save for your own retirement and simultaneously put money away for your children’s college educations. However, if you can afford to save for college, try to do so in as advantageous a manner as possible.

Buying a bigger house than you can afford: If you tie up too much money in mortgage payments, you will have less to contribute to your various retirement accounts. And while home equity certainly has some value, it generally does not provide you with the same liquidity – and probably not the same potential for growth and income – as an investment portfolio that’s appropriate for your needs and risk tolerance. So, think carefully before purchasing that big house – you might be better served by scaling down your home ownership and ramping up your investments.

You can’t avoid all the doubts and misgivings you’ll encounter at various stages of your life. But if you can reduce those regrets associated with your finances, you could well increase your satisfaction during your retirement years.


This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Courtesy of Walter Lother, Financial Advisor, in North Adams, at 413-664-9253. Edward Jones, its employees and financial advisors cannot provide tax or legal advice. You should consult your attorney or qualified tax advisor regarding your situation.

 


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Clarksburg Gets 3 Years of Free Cash Certified

By Tammy DanielsiBerkshires Staff
CLARKSBURG, Mass. — Town officials have heaved a sigh of relief with the state's certification of free cash for the first time in more than three years.
 
The town's parade of employees through its financial offices the past few years put it behind on closing out its fiscal years between 2021 and 2023. A new treasurer and two part-time accountants have been working the past year in closing the books and filing with the state.
 
The result is the town will have $571,000 in free cash on hand as it begins budget deliberations. However, town meeting last year voted that any free cash be used to replenish the stabilization account
 
Some $231,000 in stabilization was used last year to reduce the tax rate — draining the account. The town's had minimal reserves for the past nine months.
 
Chairman Robert Norcross said he didn't want residents to think the town was suddenly flush with cash. 
 
"We have to keep in mind that we have no money in the stabilization fund and we now have a free cash, so we have now got to replenish that account," he said. "So it's not like we have this money to spend ... most of it will go into the stabilization fund." 
 
The account's been hit several times over the past few fiscal years in place of free cash, which has normally been used for capital spending, to offset the budget and to refill stabilization. Free cash was last used in fiscal 2020.
 
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