I find that the majority of my clients are trying to focus on how to build retirement money when they aren’t addressing their debt. They focus too much on investments as opposed to a total plan for their life. They are focused intently on small nickel and dime savings methods while ignoring the more important larger portfolio. They take 2,000 hours for their work but can hardly spare an hour for their estate. “There’s no rush” is what I hear quite often which excuses why they should delay in making implementation and change. My focus with this blog is to help address some of these priorities.
If you have any credit card debt that is not a 0% interest, the focus should be on eliminating that debt, not saving for retirement. There is no investment I can give you that will make a better performance POST TAX to compete with a 15-29% credit card expense. If you have more than one debt you are working to pay off, organize them based upon highest APR to lowest APR. Pay the minimum payment on all of your debts and take the extra funds you have and focus them on the highest APR debt you have. Making these adjustments can cut literal months, if not years, off of paying off your debt.
Finances should always be a top priority. This goes hand in hand with estate planning. I had clients delay doing investment choices in January that by mid-March cost them over 10% of potential return they would have made from the market. When I hear “there is no hurry” when dealing with your estate, there isn’t much I can say to change your mind. If you can’t treat your estate with the priority it needs, you stand to lose and suffer as a result. I monitor my estate and make updates on a weekly basis. My clients should be monitoring their estate and assets at least once a month as a minimum. If a change should be implemented, that should be a top priority. When you delay on getting your loan, rates go up. When you delay on changing your investment, you lose return. it may not seem like much, but that one return can amount to hundreds of thousands of dollars after compound interest. That amounts to several thousand a month in lost income later on.
Treat your estate with the priority it deserves. You worked too hard your entire life to miss out on the benefits you deserve. Small changes can go a long way.