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The #1 Mistake People Make When Saving Money

February 25, 2021

You may only get one shot to maximize your savings potential. 

By Ed Jaeger, Founder and Managing Director | Plan Advisor

You’ve been saving money for years. Painstakingly socking funds away for your golden years. But the sad truth is that most people aren’t saving the right way, and their lack of insight could have devastating effects on their long-term financial outlook.

To ensure you’ll have what you need to make your retirement dreams a reality, you need to make the most of the money you’re putting away. That doesn’t mean turning it over to an investor who tells you to “be patient” or “ride it out.” It requires a long, hard look at everything you think you know about investing and saving. And it means that you need to take swift, proactive steps to maximize your saving potential.

The key to a smart savings strategy is simple: structure it more efficiently. Here’s how:

  1. Take advantage of tax strategies
    Reducing your tax burden is one of the first steps to maximizing your savings potential. Quite simply, the less tax you pay, the more savings you’ll have. It’s critical to work with a financial advisor who knows which savings vehicles have the most advantageous tax benefits, based on your tax bracket and goals, to help ensure you’re not paying more than your fair share to Uncle Sam.
  2. Audit your investment vehicles
    A thorough review of your investment accounts can reveal a great deal about the efficiency of your current savings strategy. Certain types of investment accounts may be more expensive than others. If you want to maximize your savings, you must be willing to go against the grain here and challenge your perceptions about investing to make the most of your money. Smart moves in this department may help you sail into retirement even earlier than expected.
  3. Maximize your retirement income
    An efficient money savings strategy can help ensure that you never run out of money. Our strategies can help you manage your retirement earnings with the goal of retiring sooner and potentially with more guaranteed income.

Don't make the mistake on losing out on the wealth you deserve due to an inefficient savings structure. You could be throwing money away! If you're ready to restructure your savings, send me your current investment statement for a complimentary savings efficiency analysis today. I'll show you how our proactive strategies may help you generate more retirement income.

All investing is subject to risk, including the possible loss of the money you invest. As with any investment strategy, there is no guarantee that investment objectives will be met, and investors may lose money. No strategy assures a profit or protects against a loss.

To learn more about how to save more money or for information about our Madison-area financial planning services, call (608) 213-1968 today.