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Beware of the Financial Skeletons in Your Closet

Beware of the Financial Skeletons in Your Closet

We all have financial habits or forgotten accounts hiding in the shadows, going unnoticed until they start causing trouble. These “financial skeletons” can slowly drain your wealth, create stress, and keep you from achieving your financial goals. At Blakely Financial, we’re here to remind you of these financial skeletons in your closet and help you uncover smarter ways to grow and maintain your wealth. 

Stagnant Savings Accounts

Leaving your money in a stagnant savings account is like burying it in a cursed chest that only loses its shine. While your savings may feel secure, leaving your money in a low-interest account can slowly drain its value over time, thanks to inflation. Move your money to a more lucrative spot before inflation turns your savings into dust!

Savings accounts are valuable for short-term liquidity and emergency funds but to build long-term wealth, consider a diverse variety of investments including stocks, bonds, real estate, and more. 

Underfunded Emergency Fund

An underfunded emergency fund is the financial boogeyman hiding under your bed. You may not see it, but you never know when a financial surprise will creep up—a medical emergency, car repair, or unexpected expense can strike at any moment. Without a well-funded emergency fund, you could find yourself scrambling to cover the cost, leaving your financial stability on shaky ground. 

We recommend building an emergency fund with 3 to 6 months’ worth of expenses saved to provide peace of mind when life throws you a curveball. Create good saving habits by making consistent contributions to your fund and regularly monitoring your progress. Even small contributions will get you closer to financial security!

Neglected Retirement Accounts

Beware the dusty tombs of your forgotten retirement accounts! Left unchecked, these relics from the past can become financial traps full of hidden fees and poor investments. If you’ve hopped from job to job over the years, you may have left behind old 401(k)s or retirement accounts without a second thought. These forgotten accounts can quietly lose value with missed growth, hidden fees, or poor investment performance, leaving your future at risk. Don’t let your golden years turn into a financial nightmare – unearth those accounts and bring them back to life!

You have a few options for old employer retirement accounts including keeping them with your old employer’s plan, rolling your 401(k) over into an IRA or into your new employer’s plan, and cashing out. All options have benefits and disadvantages, so it is important to understand and weigh your options. Talking to your financial advisor can help you figure out which is best for you and your unique financial situation. 

 

From high-yield savings accounts to strategic investments, we’ll make sure your money is working for you, not wasting away as financial skeletons in your closet. Contact the Blakely Financial team today to get started. 

 

Blakely Financial, Inc. is an independent financial planning and investment management firm that provides clarity, insight, and guidance to help our clients attain their financial goals. Engage with the entire Blakely Financial team at WWW.BLAKELYFINANCIAL.COM  to see what other financial tips we can provide towards your financial well-being.
Commonwealth Financial Network® or Blakely Financial does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation.