Avoid these financial pitfalls and secure your future with ease.

TLDR:

• 11 common financial mistakes and how to avoid them
• Mistakes include over-allocating to illiquid assets, single assets, and using cash for charitable gifts

In this article, Adam M. Grossman discusses 11 common financial mistakes that individuals can make and provides advice on how to avoid them. One key mistake is over-allocating to illiquid assets, as illustrated by Harvard University’s endowment facing a cash crunch in 2008. Grossman also warns against over-allocating to a single asset, such as one of the Magnificent seven tech stocks, and emphasizes the importance of diversification. He advises against choosing interesting investments over simpler, more profitable options and highlights the benefits of carrying umbrella insurance and being intentional about tax planning in retirement. Grossman also discusses the pitfalls of acting on market forecasts, anecdotes, recent events, political events, and paying too much for college as a parent. By being aware of these common mistakes and taking proactive steps to avoid them, individuals can make better financial decisions and secure their financial future.