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.
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.
-
Aging: The Overlooked Risk Factor
Sponsored Elder care is a personal and financial vulnerability many people fail to plan for.
-
AI vs the Stock Market: How Did Alphabet, Nike and Industrial Stocks Perform in June?
AI is a new tool to help investors analyze data, but can it beat the stock market? Here's how a chatbot's stock picks fared in June.
-
Eight Tips From a Financial Caddie: How to Keep Your Retirement on the Fairway
Think of your financial adviser as a golf caddie — giving you the advice you need to nail the retirement course, avoiding financial bunkers and bogeys.
-
You Were Planning to Retire This Year: Should You Go Ahead?
If the economic climate is making you doubt whether you should retire this year, these three questions will help you make up your mind.
-
Are You Owed Money Thanks to the SSFA? You Might Need to Do Something to Get It
The Social Security Fairness Act removed restrictions on benefits for people with government pensions. If you're one of them, don't leave money on the table. Here's how you can be proactive in claiming what you're due.
-
From Wills to Wishes: An Expert Guide to Your Estate Planning Playbook
Consider supplementing your traditional legal documents with this essential road map to guide your loved ones through the emotional and logistical details that will follow your loss.
-
Your Home + Your IRA = Your Long-Term Care Solution
If you're worried that long-term care costs will drain your retirement savings, consider a personalized retirement plan that could solve your problem.
-
I'm a Financial Planner: Retirees Should Never Do These Four Things in a Recession
Recessions are scary business, especially for retirees. They can scare even the most prepared folks into making bad moves — like these.
-
A Retirement Planner's Advice for Taking the Guesswork Out of Income Planning
Once you've saved for retirement, you'll need your nest egg to support you for as many as 30 years. For that, you need a clear income strategy, not guesswork.
-
Why Smart Retirees Are Ditching Traditional Financial Plans
Financial plans based purely on growth, like the 60/40 portfolio, are built for a different era. Today’s retirees need plans based on real-life risks and goals and that feature these four elements.