These financial pros can't turn back time, but that doesn't mean you can't learn from their mistakes and lessons
1. Save for retirement as soon as you can
“I wish someone told me about the importance of saving for retirement sooner. Even if it’s not through a 401(k), an IRA is always another great alternative. Many people wait for the opportunity to utilize an employer-sponsored 401(k). While it might be a little easier to set one up through an employer, considering an IRA might be a sound plan if people want to start saving sooner than that.” — Angela Ruth, Due
2. Take a holistic view of your financial health
“Evaluate your financial health holistically and for the long term. It’s easy to focus on your near-term future or become hyper-focused on one aspect of your financial journey, such as Roth IRA contributions and performance. People often overlook less obvious but equally important factors, such as their tax, legal or insurance policies. And of course, it’s OK to ask for help from a trusted source.” — H. Adam Holt, Asset-Map
3. Know how much your skills are worth
“My advice is universal, but I want to especially advise women: Do not undervalue yourself when negotiating your salary early in your career. When I interview women and men for positions, women typically will undervalue their skill set and be willing to accept a lower starting wage. That one strategic error will set the pace of their earnings for years to come. It is a very costly financial mistake.” — Elizabeth Graham, Riggs Asset Management Co., Inc.
4. Understand what a fund's "average growth" means
“The term ‘average growth’ did not mean what I thought it did. So many funds advertise YY% average growth for the last XX years. The market might have grown an average of YY a year over the previous 100 years, but that does not mean the value of your portfolio increases YY every year — oops. It took me a while to get over that misconception with my investments. That was an expensive lesson.” — Deborah W. Ellis, Cogent Independent Advisors, Inc.
5. Leverage tax diversification to manage your tax bracket
“I wish I knew about the importance of tax diversification. Yes, it is important to take advantage of tax deductions and tax credits to lower your tax liability today, but it is equally important to include tax-free accounts and taxable accounts to be able to proactively manage your tax bracket.” — Marguerita Cheng, Blue Ocean Global Wealth
Originally published by Kiplinger Advisor Collective
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