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 useful advice to keep in mind, as you never know when you might need them.
Remember Your Financial Advisor
If you’re having a baby, going on an extended vacation, or buying a house, there’s one person who needs to know (and it’s not your Facebook friends or Instagram followers). When taking 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, such as overborrowing or overlooking an important tax exemption. Don’t be afraid to get some expert advice.
Remember to Scrutinize
Imagine the rigorous screening process you used for choosing a babysitter or a family doctor. Now try to apply the same stringent methodology to who you’ll entrust with your savings. After all, this involves your long-term financial goals and stretches well into your retirement years. You need to ensure that both you and your family have the financial security you worked hard to achieve, and a competent financial planner will definitely help you along the way. So, when you’re selecting this person, it’s important that you’re thorough and don’t skimp on the details.
It’s not only their qualifications you need to scrutinize, but also 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 and expand your knowledge, which can prevent you from getting swept up in all the financial 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 stress during an already stressful time. Leaving a proper will 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 love and trust.
Remember the Taxman
Taxes are possibly the one thing on this list as frightening, and as certain, as death itself. The headache associated with incurring the wrath of the CRA or IRS can be easily averted by saving key financial items. Hang on to credit card receipts, bank statements, copies of cheques (if you still use them), and any other relevant information you have related to major financial transactions in your life. It’s the insurance you need to keep yourself free of additional federal taxes and possible financial penalties.
Alex Correa | Staff Writer