Although life expenses are constant and often unexpected, investors can build a strong financial portfolio by avoiding common financial mistakes. Even if you’re already dealing with financial hardship, the right decisions can help prevent further damage. Creating a leaner lifestyle, spending within your means, building home equity, and investing on a regular basis are all ways to increase your financial strength.
Start by monitoring little expenses that add up quickly and seriously consider any new expenditures. Having a plan will also help you achieve a strong financial future. Take action now by developing a sound financial plan with your Enso | Sonoma financial advisor. Clarity of your current financial standing will help you achieve your future goals!
Depending on the investor, a splurge can include a fancy coffee habit or big-ticket item like a new boat. Regardless of your preference, this type of special purchase can be a good way to reward yourself and help you achieve your financial goals, if done wisely. Be sure to consider whether or not you have the following before opening your wallet:
In addition to the strength of your financial portfolio and potential risk of the purchase, you should consider if the item will give you long-term happiness, you’ve done enough research, and you’ll be able to avoid overspending. Ask your Enso | Sonoma financial advisor for guidance in creating an investment plan that allows you to spoil yourself, you deserve it.
Along with many large companies, the Social Security Administration has been a favorite target of identity thieves. As the skills of cyber criminals strengthen, this issue will continue to exist as Baby Boomers age. Once they obtain a Social Security number and other personal information, they file for benefits in that person’s name. While the SSA doesn’t release information on incidents related to identity theft and benefits, a 2015 report from the Inspector General reflected that about $20 million in benefits were sent to the wrong bank accounts. Whether or not you are already receiving benefits, you can be a potential victim.
To protect yourself from the threat of identity theft and lost Social Security benefits as a retiree, preventative actions must be taken as soon as possible. It’s a good idea to set up a MySocialSecurity account at www.socialsecurity.gov. This account will help you estimate your benefits, review the accuracy of your earnings history and check any activity related to your Social Security number. You can alternatively call Social Security’s toll-free number to gather this information. For those already receiving benefits, consistent monitoring of bank deposits is necessary. If a deposit isn’t made on time, contact Social Security immediately.
Collaborate with your Enso | Sonoma financial advisor to create a plan that will protect you from lost investments or retirement benefits.
Net worth is the remaining figure after accounting for total financial assets and liabilities. It involves subtracting all debts, like a mortgage, from the sum of all assets, such as a home and investment portfolio. Determining your net worth is a personal finance necessity because it establishes your ongoing progress and assists with future financial decisions involving assets and debt.
It’s best for investors to update their net worth figure on an annual basis so that a benchmark is available to use in evaluating financial health. By calculating net worth regularly, a current financial situation can be compared to future financial needs. A key tip for investors calculating net worth is to be realistic. With a slightly conservative mindset, assets can be valued more appropriately and help provide a more accurate depiction of net worth. Work with your Enso | Sonoma financial advisor to determine your net worth and decide how to use it to your advantage.