Investing in Exchange-Traded Funds (ETFs) offers a simple and diversified way to participate in the financial markets. But, even experienced investors can make some mistakes that can hinder the growth of their investment portfolio. So, it is essential to understand the common ETF-investing mistakes and learn how to avoid them. Whether newbies or seasoned investors, understanding some common pitfalls can help investors make informed decisions and achieve their financial goals. Neglecting research – the foundation of sound investing Before venturing into the ETF market, conducting thorough research is essential. Many investors overlook this critical step, which can lead to uninformed decisions and potential losses. Take the time to understand the underlying assets, investment objectives, and historical performance of the ETFs. Neglecting research can result in significant setbacks. With thorough research, one can make informed decisions to mitigate risks and maximize investment potential. Overlooking expense ratios – the silent erosion of returns The expense ratio is one of the most commonly overlooked aspects of ETF investing. While it may appear insignificant at first glance, the expense ratio can have a great impact on one’s investment returns over time. Higher fees can eat into one’s profits and erode long-term gains, making it crucial to evaluate the expense ratios of ETFs carefully.

Mortgage refinancing is  the act of  trading an old mortgage for a new and revised one, likely with a new balance. It is essentially a way of optimizing one’s finances. Refinancing can be of two major types – rate-and-term refinance and cash-out refinance. It typically costs around 3-6% of the loan’s principal, along with an appraisal, title search, application fees, and more. Individuals may have numerous reasons why they choose to refinance their mortgages. Lowered monthly payments There are three reasons why people may opt in for lower monthly payments: Interest rates fluctuate significantly through the years. If the rate has dropped by a decent margin, one may be interested in having their loan terms re-adjusted.  This  can help lower one’s monthly payments and reduce expenditure over the entire term of the loan. In the last few years, many people have also witnessed mass layoffs, which have impacted their ability to repay their mortgage loans. In such cases, opting for refinancing can help bring down the monthly payments by increasing the length of the loan term. If a major chunk of the mortgage has been paid off and/or the home’s value has increased, the loan-to-value ratio (LTV) will reduce.  This  makes the home low-risk for the vendor, who may allow refinancing for lower monthly payments.

The Department of Veterans Affairs (VA) provides various benefits for senior veterans for their bravery and dedicated service to the nation. Referred to as VA benefits, some popular ones include disability compensation, pension, and healthcare. Older veterans struggle to return to their daily lives after leaving the military. These perks assist them in meeting their personal needs. However,  a lot  of these benefits are underutilized mostly because senior veterans are unaware of them. Aid and attendance (A&A) The Aid and Attendance program offers additional monthly payments to eligible veterans and their spouses who need help with  daily tasks such as bathing, dressing, and eating.  This extra income makes daily help more accessible for veterans. To receive this benefit, the veteran must receive a pension, require assistance with daily activities, or be bedridden. One must go through their local VA office and provide all necessary documentation to apply for this benefit.  Home-based primary care (HBPC) Some veterans may find it difficult to visit their doctors. In such cases, the VA also offers home-based primary care services, where the healthcare provider visits the patient at the convenience of their home.  To be eligible for this benefit , senior  veterans must be enrolled in the VA healthcare system and have  a referral from their primary care physician.

Personal loans are often the go-to solution for meeting urgent monetary needs like paying for major home improvements or repairs, making large purchases, or medical expenses. Today, online banking solutions have made applying for personal loans easier. However, as with any type of borrowing, one needs to do their research and be careful while taking out a personal loan. Rushing the process to secure instant personal loans can lead to lapses and unwanted surprises.  1. Not checking the credit score When planning to apply for a loan, the first thing to do is check the credit score. One’s credit score is what determines their eligibility for securing a loan and the interest rate on the loan. The higher the credit score, the better rates one will be offered by lenders. This is because a good credit score tells lenders that the borrower has so far been careful with debt repayment, making them seem trustworthy. So, before applying for a loan, one must check their credit report and review their credit history carefully. This way, one can review existing debt and loan repayment that could affect their personal loan application and ability to repay the new loan. The step also helps one set realistic expectations while seeking a loan.

A good savings account is critical for achieving long-term financial objectives. Unfortunately, making a few common mistakes can jeopardize one’s savings account. According to a Household Economics and Decision-making survey, the indicator of the financial well-being of adults who felt less well off financially than in the previous year reached 35%. Avoiding a few mistakes when saving money can lower this percentage. Also, one can build a solid foundation for long-term financial growth. Savings account mistakes to avoid Let’s highlight and discuss the seven most critical savings account mistakes to avoid. 1. Failing to set specific goals A common mistake is failing to establish the purpose for which one is saving. Lack of clarity about what one wants to achieve will strip one of motivation and lead one into the habit of over-consuming. Define one’s short-term and precious long-term objectives, such as saving an emergency fund, acquiring a home, or securing well-being following retirement. Records of one’s precise goals assist one in always keeping them in mind and make it easier to prioritize savings over unwise expenditures. One must allocate one’s savings to precise goals with deadlines to guarantee accountability and quantify one’s output. 2. Not establishing an emergency fund Life’s unexpected expenses can disrupt one’s budget.

A 401(k) is a phenomenally successful retirement plan offered by an employer that encourages employees to save a specific amount of their income from every paycheck. The employee can choose the amount to be saved, and the employer matches the amount. These amounts accumulate in the employee 401(k) retirement account. An employee can invest the amount, take a loan against it, or withdraw it before retirement—against conditions and penalties. Advantages of 401(k) for employees 401(k) plans allow employees to have financial security during retirement without worrying about managing their post-retirement life without income. They can now set a portion of their income to secure their post-retirement financial needs. The plan also offers tax savings, opportunities to invest the money accumulated in their 401(k) plan, and, under specific conditions, take a loan in case of a financial emergency. Common mistakes that can devalue a 401(k) If an employee uses the various provisions and benefits of 401(k) in terms of contributions and investment, it can be a solid fund with good savings, returns, and tax benefits. However, if an employee does not use the opportunity well, it can result in wasted savings. These mistakes happen mainly because the employee may lack information about the different investment options, the loss, the penalties associated with loans, or the disadvantages associated with early savings withdrawal.