Financial planning is one of the most important steps to secure your future. Many people think it is easy, but small mistakes can cost a lot over time. Eric Felsenfeld at Ameriprise has helped many clients manage their money, and he often sees the same mistakes again and again. To help readers make smarter choices, here are eight pitfalls to avoid in financial planning.

1. Ignoring Your Long-Term Goals

Many people focus only on short-term needs, like monthly bills or paying off debt. While these are important, they often forget about long-term goals like retirement, buying a home, or paying for children’s education. Without a plan, it is hard to reach these goals. Long-term goals give direction and motivation. Set clear goals and follow them step by step. Check your progress regularly and adjust your plan if your situation changes.

2. Not Planning for Taxes

Taxes can take a big part of your savings if you do not plan. Some consumers fail to take advantage of easy tax breaks while investing or saving. Contributing to retirement accounts, selecting tax-efficient investing alternatives, and properly managing withdrawals may save you a lot of money over time. Planning for taxes now and in the future ensures that you keep more of what you make. It also helps to avoid surprises when tax season approaches. Small measures today can save thousands in the long run.

3. Underestimating Risks

Your money can increase with investments, but there is risk involved. Planning is avoided by some people because of a fear of financial loss. Other people take chances without considering the outcomes. The optimum strategy is one that is balanced. To protect your future, spread your money in various ways, know your risk tolerance, and think about how long you have to invest. There is no need to be afraid of risk. Being aware of it enables you to make wiser decisions and save significant losses.

4. Not Reviewing Insurance Coverage

Insurance is often ignored, but it protects against unexpected events. People may not know their policies are outdated or do not cover current needs. Life, health, disability, and property insurance are important. Checking your insurance regularly makes sure your family and assets are safe. Insurance is not just for emergencies. It is part of a smart financial plan. Proper coverage prevents small problems from becoming big financial issues.

5. Overlooking Estate Planning

Many people don’t consider what will happen to their assets and money once they die. Writing a will is only one aspect of estate preparation. Additionally, it lowers taxes, ensures that your money is going to the right people, and safeguards the future of your family. Without a plan, loved ones could have issues or incur additional expenses. The process is facilitated by documents such as healthcare instructions, powers of attorney, and trusts. Early planning allows for peace of mind and control.

6. Not Adjusting Your Plan Over Time

Life evolves quickly. Marriage, children, career transitions, or illness can happen and alter your objectives. Some individuals create a plan and never review it again. Looking over your plan from time to time keeps it effective and functional. It keeps your money in step with your evolving needs. Financial plans are dynamic. Monitoring them frequently allows you to react to changes in income, expenses, and priorities. This keeps you on target for your objectives.

7. Taking Advice Without Understanding

Financial planners can assist you, but following advice blindly is dangerous. Always know why they make a suggestion. Inquire about fees, risks, and potential results. Having reasons for advice makes you a better decision-maker. Eric Felsenfeld of Ameriprise suggests engaging clients in planning. Understanding each step makes you confident and prevents errors. You should always know what your plan accomplishes and for what reason.

8. Not Diversifying Investments

Investing all your money in a single investment may be risky. Diversification distributes risk and insulates your money from the ups and downs of the market. Most of us are high-return oriented but lose sight of potential loss. A combination of stocks, bonds, property, and other assets is more effective. Diversifying safeguards your plan while it grows. Placing investments strategically enhances the likelihood of achieving success.

How to Avoid These Mistakes

Financial planning is more than following rules. It needs attention and regular effort. Start by knowing your income, spending, debts, and savings. Track your spending to find ways to save. Set clear short-term and long-term goals. These goals guide your investments, taxes, and insurance choices.

Save for taxes and select investments appropriate for your circumstances. Review insurance and estate plans to ensure they continue to meet current needs. Become informed about financial choices and ask questions. Seek the advice of experts but ensure you know what it is. Update your plan at least annually. Ongoing checks minimize errors and enhance outcomes.

How Eric Felsenfeld at Ameriprise Helps

Eric Felsenfeld at Ameriprise works with clients to make plans that fit their needs. He prioritizes goals, risk level, and behaviors. He assists customers in avoiding frequent mistakes by taking into account taxes, investments, insurance, and estate planning. His advise is straightforward, uncomplicated, and practical. Clients learn to safeguard and build their money in a secure manner. Many clients appreciate his clear counsel and hands-on assistance.

Conclusion: Keep Your Money Safe

Financial planning does not need to be hard. By avoiding these eight mistakes, you can protect your money, lower stress, and reach your goals. Eric Felsenfeld at Ameriprise reminds readers that the key is clear goals, regular checks, and understanding your plan. Keep your goals in mind, review your plan, and ask for advice when needed. Avoid these pitfalls and take control of your money. With careful planning, your future can be secure and stable.