Financial Mistakes To Avoid

There are investment mistakes, savings mistakes and spending mistakes, just to name a few. By knowing where others have lapsed, maybe you'll take fewer chances with the money you've worked so hard to earn.

For more complete information on Financial Mistakes To Avoid view our fact sheet.

Financial Mistakes To Avoid

1. Letting savings lapse. Start now by putting a little away from each paycheck into a systematic savings or investment plan. As your salary increases you should also increase the amount you're saving or investing.
2. Not putting money in your employer's retirement savings plan. A 401(k) has several advantages: it is funded by pre-tax money;it grows tax-deferred;and employee contributions often are matched by a company contribution.
3. Diversify your retirement investments. Asset allocation means creating an investment portfolio that provides a balance between the potential to achieve the returns you need to meet your retirement objectives and the amount of risk you're willing to assume.
4. Using retirement savings as the family piggy bank. When unexpected expenses arise you may be tempted to withdraw money from your retirement accounts. This can be costly because "loans" from your 401(k) must be repaided with interest and you lose the opportunity to earn tax-deferred growth on those earnings while they are withdrawn. And in most cases if you cash out retirement accounts before you turn 59 1/2 you'll be subject to a 10% federal tax penalty on top of ordinary income taxes that'll be owed.
5. Counting on social security as your primary retirement income. Average social security benefits replace only about 40% of your pre-retirement income.
6. Not setting (or sticking to) financial goals. You need to plan around where you are now, where you want to go and determine the budget you'll need to get there.

Need Help
Call us at 1-800-392-3009 to schedule an appointment with a Financial Advisor for help in planning to reach your financial goals. Or visit any People's United Bank Branch.

People's Financial Advisors is a division of People's Securities, Inc. Investments & Insurance are available through People's Securities, Inc. (member FINRA and SIPC), a subsidiary of People's United Bank.