There are many ways to mess up your finances. But financial expert Mark Lamkin from Lamkin Wealth Management can help you avoid some common and costly mistakes. In fact, he has a list of the five dumb things people do with their money.
1. Too Good To Be True: The old adage that if it sounds to good to be true then it probably is--is never is more true when it comes to money. If you don't understand it, don't invest in it. Make sure you check the credentials and background of someone, if you're taking them at their word. From financial products and services, to small businesses, to flipping houses to "deals" in general, Lamkin says he has seen hundreds of thousands of dollars lost in this manner.
2. Tax Reason: Many people believe they can't sell stocks and bonds because they will have to pay capital gains. Lamkin says do NOT let the tax tail wag the dog. In this market if you wait long enough, your gains may vanish, and you'll have a capital loss instead of gain. If YOUR reason to own the asset has changed or the stock has changed SELL IT. Pay your taxes, and move on.
3. IRA to Credit Card: Don't raid your retirement accounts to payoff credit card debt. You'll have penalties and taxes and be paying this off for 50 cents on the dollar.
4. Debt Free Graduate: Keep borrowing to a minimum to put your kids through college. But don't raid your IRA and put your retirement at risk because you want them to be debt free. They should have some skin in the game. The reality is they will have more time to pay off that debt than you do. They will be entering the workforce in their early 20s with more than 40 years of work ahead of them. You might be in your mid-50s with less than 10 years left in your career. Retirement should be your top financial priority.
5. Small Business: This is the number one dumb thing Lamkin sees. Too many people try to go into business without the proper background. He says if you have no restaurant experience, then why open one? If you don' t have training or more important a passion and understanding of a small business, then don't do it! an entrepreneur is someone that will work 80 hours a week for himself so he doesn't have to work 40 for someone else. Think about that!
Lamkin Wealth Management
5151 Jefferson Blvd., Suite 102
or
901 Lily Creek Drive Ste. 102
office: 502-961-6550 Office
toll free: 866-961-6550
www.lamkinwealth.com
"Securities Offered Through LPL Financial, Member FINRA/SIPC and an Investment Advisor"
