Financial advice is like insurance – it’s better to have it and not need it than need it and not have it. And when it comes to financial advice, there are plenty of familiar tips – set a budget, make a financial calendar, track your net worth, etc. As important as those financial tips are, there are some that fly under the radar and could be devastating if gone unheeded. These helpful tips from financial advisers are just bits of useful advice you should keep in mind until the moment you need them and, trust us, you will!
Remember Your Financial Adviser
If you’re having a baby, going on an extended vacation or buying a house, there is one person who needs to know and they are not on social media! When undertaking such a big financial step, you should consult a financial planner to make sure everything is kept in order and that there are no issues in overborrowing or overlooking a much-needed tax exemption.
Remember to Scrutinize
Imagine your rigorous screening process in choosing a babysitter and try to apply the same stringent methodology to who you’ll entrust with your savings. After all, it involves your long-term financial goals, well into retirement. You need to make sure both you and your family have the financial security you worked hard to achieve, and a competent financial planner will be sure to help you along the way.
It doesn’t only mean to scrutinize their qualifications, but to be sure of the type of service they will offer. Designations are important to understand and discern for your personal financial benefit. You can also do your own personal research. Don’t get swept away in all the finance jargon!
Remember the End
This one is often overlooked because most people don’t want to think about dying. But keeping an updated will and designating beneficiaries will save your loved ones additional amounts of stress during an already stressful time. Leaving a testament ensures that no one is blindsided by taxes or administrative expenses as a result of intestacy laws. You can rest easy knowing the money you worked hard to earn will grow in the hands of the people you trust.
Remember the Taxman
Possibly the one thing on this list as frightening, and as certain, as death. The headache associated with incurring the wrath of the IRS or CRA can be easily averted by saving key financial items. Hang on to credit card receipts, copies of checks, and any information you have in regard to big financial movements in your account. It’s the insurance needed to be free of additional federal taxes and any possible penalties.
Alex Correa | The Edge Blog