You could be making a simple retirement mistake that’s costing you thousands of dollars a year.
That’s just one reason financial experts say now is the time to recalibrate monetary policy mid-year. With the calendar already reaching the halfway point of the year, wealth experts say it’s time to take a closer look at your finances.
In a recent appearance on the In Your Corner podcast, Mical Jeanlys-White, the founder of Wealthmore and host of the All the Wealth podcast, said it doesn’t take hours to get back on track. A simple 10-minute check-in can make a significant difference.
Table of Contents
Check recent issues
First, look at the last month or two. Focus on where your money is going and identify areas where you can make cuts, she said.
This may include takeout, subscriptions, or other non-essential expenses.
Even small changes can add up quickly.
Tackle high-interest debt
If you have credit card balances, pay attention to your interest rates. Jeanlys-White says many people don’t realize they can negotiate.
You can call your credit card company and ask for a cheaper rate. According to LendingTree, four out of five inquirers receive some form of discount.
If you have credit, lowering your rate can save you money right away.
Mid-Year Money Reset: Fix Your 401(k) and Keep More of Your Paycheck from CBS Philadelphia on YouTube
Review your 401(k) and retirement accounts
Experts say this is where many people make a costly mistake.
Some employees contribute to a 401(k) or IRA, but their money is not actually invested. That’s because not all 401(k) plans will automatically enroll you in a qualified standard investment. For IRAs, cash is the “de facto standard” for direct contributions and most surpluses.
In this scenario, money essentially sits idle instead of growing.
“People signed up, made a choice, but left it in cash,” Jeanlys-White said. “It’s not invested, so it’s almost like putting it in a savings account.”
This could mean you miss out on potential profits for years. Vanguard research found that nearly 30% of individual retirement accounts had not been paid out in cash for seven years, costing investors significant growth over time.
Jeanlys-White said it’s also important to consider whether you’re contributing enough to your 401(k) for the employer contribution, otherwise you’ll be missing out on “free money.”
Why this check-in is important now
A mid-year reset is particularly important as inflation, interest rates and everyday spending continue to change.
Your January financial plan may no longer reflect reality, Jeanlys-White said.
Whether your goal is to get ahead or simply stay on track, taking a few minutes now to review your expenses, debts, and investments can help you avoid bigger problems later.
It can also help you make smarter decisions for the rest of the year.
You can hear the full discussion on the latest episode of the In Your Corner podcast. There is a different guest expert every week. Find new episodes every Wednesday on the CBS Philadelphia YouTube channel.
Are you looking for help with a consumer problem? Click here to submit your complaint to In Your Corner.
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