Top 9 Financial Planning Mistakes
No matter your age or current fiscal status, you can help yourself achieve all your financial goals by avoiding these coming errors.

My clients often ask what they can do today to avoid financial challenges in the future. They might find themselves with extra income after paying off debt, have a dream to buy a home or need a retirement plan, and they're not sure where to start. If this sounds like you, keep reading so you can avoid these common financial planning mistakes.
1. Not having a plan.
In order to accomplish anything, you first need to have a plan. Begin by asking yourself where you want to be financially in five, ten or twenty years. Do you want to own a home? Do you want to be debt-free? (Yes, it is possible!) When do you want to retire? What kind of lifestyle do you want when you retire? These and many other questions are the start of your financial plan.
2. Assuming the financial professional you select today is yours for life.
Life changes, and so does your financial plan. If the person you're working with today isn't right for you, ask for referrals from trusted friends and family or the local chamber of commerce. Interview several, and select the person that best suits you, your family and your financial goals.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
3. Delaying when you start to save.
If I had a dollar for every client that came to me saying they wished they had saved for retirement from the time they graduated college, I could retire! Just $50 a month adds up over the years. If you're a parent, encourage your children to save and invest early so they don't have the stress older Americans have when it comes to having enough to buy a home, take a dream vacation or retire.
4. Assuming Social Security is part of your plan.
Our parents may be guaranteed Social Security, but don't assume the same for yourself or your children. Rather than having to fill a gap in income when you're getting ready to retire, prepare ahead of time. If Social Security is available, that's added value to your retirement plan, and if not, you've got what you need to live the way you want to live.
5. Forgetting about your ex-spouse's Social Security benefits.
If you're close to retirement age and have been divorced, you may be eligible for ex-spouse benefits. Factors such as length of the marriage, age of your ex-spouse, remarriage and current marriage status impact eligibility. The laws are constantly changing, so check with your trusted financial professional to see if you qualify.
6. Lack of communication.
Whether it means communicating with your spouse, children, financial professional or estate planning attorney, you can't be the only one who knows your financial and legal information.
You might think you're just being private, but if you're incapacitated or die, you leave loved ones stressed not knowing your wishes or where to find your estate plan where you've expressed your wishes. This often leads to family arguments, and it doesn't need to be that way. Make sure loved ones know where to find your bank, investment, retirement account, insurance and estate planning documents in the event they need to act on your behalf.
7. Neglecting to update beneficiaries.
If you've experienced a life change such as marriage, divorce or having children, you need to review beneficiaries on all bank and investment accounts as well as insurance policies. In some states, the person listed as the beneficiary trumps all other documents. That means if you forget to take your ex-spouse off a bank account, and you die, the ex-spouse is the beneficiary of the funds, not your new spouse, children, grandchildren or anyone else you might prefer to designate. That could mean there isn't money for the surviving spouse for expenses such as paying off a car or mortgage.
8. Failing to invest with an employer-sponsored retirement plan.
If your employer is sponsoring a retirement plan, find out if they match your investment. For every dollar you contribute, the company may contribute an amount up to a percentage of your salary, which means you're making money simply by participating. Make sure you understand the details before saying yes.
9. Skipping saving while you're paying off debt.
It's tempting to put all of your extra money toward paying off debt, but don't forget to save while you're doing it. Establish an emergency fund, and then think about expenses such as car repairs, new car savings and pet bills. If you don't have that money put aside, you're likely to use credit cards to cover those kinds of costs and will never eliminate the cycle of debt.
You can begin a plan for your future whether you're a young couple, ready to retire, or somewhere in between. Identifying your goals and finding a trusted financial professional are the first steps to avoiding financial planning mistakes.
Shanna Tingom is a Registered Representative, securities offered through Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC., Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser. Cambridge and Heritage Financial Strategies are not affiliated.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Shanna Tingom is a registered representative, securities offered through Registered Representatives of Cambridge Investment Research, Inc., a Broker/Dealer, member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge and Heritage Financial Strategies are not affiliated.
-
Stock Market Today: Have We Seen the Bottom for Stocks?
Solid first-quarter earnings suggest fundamentals remain solid, and recent price action is encouraging too.
By David Dittman
-
Is the GOP Secretly Planning to Raise Taxes on the Rich?
Tax Reform As high-stakes tax reform talks resume on Capitol Hill, questions are swirling about what Republicans and President Trump will do.
By Kelley R. Taylor
-
Social Security Is Taxable, But There Are Workarounds
If you're strategic about your retirement account withdrawals, you can potentially minimize the taxes you'll pay on your Social Security benefits.
By Todd Talbot, CFP®, NSSA, CTS™
-
Serious Medical Diagnosis? Four Financial Steps to Take
A serious medical diagnosis calls for updates of your financial, health care and estate plans as well as open conversations with those who'll fulfill your wishes.
By Thomas C. West, CLU®, ChFC®, AIF®
-
To Stay on Track for Retirement, Consider Doing This
Writing down your retirement and income plan in an investment policy statement can help you resist letting a bear market upend your retirement.
By Matt Green, Investment Adviser Representative
-
How to Make Changing Interest Rates Work for Your Retirement
Higher (or lower) rates can be painful in some ways and helpful in others. The key is being prepared to take advantage of the situation.
By Phil Cooper
-
Within Five Years of Retirement? Five Things to Do Now
If you're retiring in the next five years, your to-do list should contain some financial planning and, according to current retirees, a few life goals, too.
By Evan T. Beach, CFP®, AWMA®
-
The Home Stretch: Seven Essential Steps for Pre-Retirees
The decade before retirement is the home stretch in the race to quit work — but there are crucial financial decisions to make before you reach the finish line.
By Mike Dullaghan, AIF®
-
Three Options for Retirees With Concentrated Stock Positions
If a significant chunk of your portfolio is tied up in a single stock, you'll need to make sure it won't disrupt your retirement and legacy goals. Here's how.
By Evan T. Beach, CFP®, AWMA®
-
Four Reasons It May Be Time to Shop for New Insurance
You may be unhappy with your insurance for any number of reasons, so once you've decided to shop, what is appropriate (or inappropriate) timing?
By Karl Susman, CPCU, LUTCF, CIC, CSFP, CFS, CPIA, AAI-M, PLCS