When a new member starts at Financial Zen, we usually have to do some immediate “financial triage.” We see all of these all the time, so you’re not alone if you check a few (or all of them)
10. The Tax Time-Bomb (Under-withholding)
Nothing kills an April morning like a surprise five-figure bill from the IRS. Most people under-withhold completely by accident. (And don’t even get me started on the special RSU withholding rates.)
9. The “Safe” Bet (Way too much cash)
Cash feels safe, but inflation is the silent killer. Holding massive amounts of cash for years isn’t “conservative”—it’s a guaranteed way to lose purchasing power while the market passes you by. (We’ve also seen people hold on to way too much cash just because they weren’t paying attention.)
8. The Unfinished Business (No beneficiaries)
If you haven’t named beneficiaries on your accounts, you’re leaving a giant legal headache for your loved ones. Without these, your assets get stuck in probate, costing time and money that could have been avoided with two minutes online.
7. The 401(k) Fumble (Not maxing it out)
Leaving employer match money on the table or failing to hit the IRS max is like turning down a guaranteed raise. It is the most efficient wealth-building tool most people have.
6. The Mortgage Mistake (Paying down low-interest debt)
We get the emotional appeal of a “paid-off home,” but if your mortgage rate is 3% and the market is returning 10%, you are literally losing money by paying that debt off early. Use leverage as a tool, not a fear.
5. The HSA Leak (Using it for current medical bills)
The HSA is the “Holy Grail” of investment accounts—triple tax-exempt. If you’re spending that money on today’s co-pay instead of investing it for 20 years, you’re missing out on the best tax shelter in existence.
4. The Concentrated Gamble (50%+ in one stock)
We love that your company stock did well, but having 50% your net worth in one ticker isn’t investing; it’s “betting it all on black.” Bad things happen to good companies. Don’t take the chance of blowing up your savings.
3. The Legacy Gap (No Estate Plan)
No Will. No Trust. No Power of Attorney. If you don’t have an estate plan, the state has one for you—and I promise you won’t like theirs as much as yours.
2. The Underinsured Parent (1/3 of the life insurance you actually need)
We see this constantly: parents with young children who think they are covered because they have “a policy.” In reality, most have only 1/3 to 1/2 of the coverage they actually need to protect their children’s future. It’s a massive risk hiding in plain sight.
1. The Invisible Risk (No Supplemental Long-Term Disability Policy)
In all my years of doing this, I have never seen a new member come in with a supplemental long-term disability policy already in place. Your ability to earn an income is your most valuable asset. If you rely solely on your employer’s “group” plan, you are almost certainly underinsured
Bonus Mistake!Learning about a few mistakes and thinking “the rest is covered.”
I’ve given a lot of “friends freebies” over the last 18 years. It always blows me away that shining a light on one unknown unknown doesn’t make people go “Gee, I wonder what else I’m missing.”
So if you checked a few of these boxes, don’t go right back to Twitter. Consider hiring Financial Zen (or someone like us) to find out what else you’re missing.