The Top Ten Financial Planning Mistakes Made by Attorneys

1. Haven’t determined how much they may need for their retirement based on their personal goals and projected expenses. They invest toward an unknown amount.

2. Don’t realize that even a small 401k or Money Purchase Pension Plan current adjustment can make a huge difference at the time they intend to use the funds. A fraction better return, a slightly different allocation or a slightly higher contribution can help make a difference.

3. They rarely revisit or maintain their older life insurance policies. So many have the wrong policy, the wrong amount, the wrong owner, the wrong beneficiaries, or maybe paying too much in premiums.

4. They don’t know how to build an appropriate investment portfolio. They are too proud or independent to seek professional advice and service.

5. They haven’t adequately accounted for inflation in their planning. Particularly, as it applies to purchasing power or potential health care issues.

6. They don’t plan carefully how to best use their year-end partnership distributions.

7. They don’t pay enough attention to their beneficiary designations near as much as they do to their wills and/or trusts. Beneficiary designations have the ability to distribute much more of their assets.

8. They don’t take time to build or monitor their personal financial plan. They face having to ‘make do’ with what they have in the future.

9. They haven’t done enough to minimize federal and state estate tax exposure that exists today. As if they know when they and their spouse will pass?

10. They own too much jointly-titled property. It prevents their wills from working as planned and may cost a great deal in unnecessary estate taxes.