Common Money and Financial Mistakes You Can Easily Avoid

5 Money Mistakes You Need to Fix Now

Address these common financial oversights or it' ll cost you

Dan Saelinger Money mistakes can happen at any time. Here are 5 tips to help you fix them.

1 Savings Bonds

The Mistake: You lose track of matured U.S. savings . These are basically interest-free loans to your Uncle Sam. The Fix: Cash in those bonds at maturity, and put that money to work elsewhere for a better return.

2 Joint Account With Children

The Mistake: You make your child a joint owner of your bank account. A co-owner is free to spend the money however he or she wants. The Fix: Limit possible damage by keeping only enough cash in a joint account to handle day-to-day bills; keep your life savings elsewhere.

3 Your Beneficiaries

The Mistake: You forget to change beneficiaries, potentially leaving assets to the wrong heirs. Spouses are entitled to s and pensions, unless they opt out. See also: The Fix: Update beneficiary forms. A will won't override the rights of an named on the forms. Don't forget to name secondary beneficiaries.

4 IRA

The Mistake: You make late contributions. An investor contributing $5,000 each January, instead of April, could end up with $12,600 more after 20 years. The Fix: Get in the habit of making annual contributions in January. An investor at 50 or older can put away a maximum of $6,500 in an IRA.

5 Tax-Deferred Contributions

The Mistake: You drop the ball on "catch-up" contributions to accounts. At 50 or older you can add an extra $5,500 a year to a 401(k). The Fix: Bump up your contribution rate. That will lower your annual tax bill, reduce how much money you have to spend, and boost total savings at .

Also of Interest

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