For Mark Roberts’ Use: Most of us will go to the doctor to have suspicious symptoms checked, or call a roofer when water is dripping from the ceiling. But for some reason, we tend to take financial advice from well-meaning coworkers, friends, or even the internet.
Maybe it seems harmless at the time, because surely your friends aren’t trying to bankrupt you. But unfortunately, following financial advice that you’ve heard from non-professionals can backfire in the long run (even when the advice seems relatively straightforward).
For example, you might have heard…
Open credit card accounts for the rewards. Yes, maintaining two or three cards can help you build a solid credit history. And yes, you can earn valuable rewards if you manage those accounts wisely.
But don’t fall into the trap of opening multiple accounts simply for the rewards! Opening too many accounts can actually hurt your credit score. Plus, you might feel tempted to overspend just to meet those introductory offer terms, and spending money you don’t have is almost always a bad decision.
Choose a bank and stick with them. Some people never switch banks, because they think they might be rewarded for their loyalty or even hurt their credit score by switching.
First of all, switching banks does not impact your score at all, so don’t worry about that.
Second, keep in mind that banks provide a service that should benefit you. If their policies change, or if you can score a better interest rate elsewhere, then you absolutely should switch. Bottom line: Your banking choice should benefit you. Don’t leave potentially thousands of dollars on the table, when you could earn a better rate on savings.
Do either of these common pieces of financial advice sound familiar? You’ve probably also heard a number of rumors regarding retirement planning. Since you don’t want to leave retirement planning up to chance, or potentially make a costly mistake, consult with us first before making any big decisions. Give us a call, and we’ll discuss your retirement dreams and then help you create a strategy to make them come true.