“No…stay away from Amazon. They are never going to make it!”

“Tesla?? Just a fad…don’t waste your money on that stock.”

We have all been the recipient of bad financial advice. And just like navigating the sea, there is good advice and there is advice that could be otherwise classified as tragic. Our intrepid navigator of finance, Ms. Katherine Vessenes, CFP®, RFC, Founder and President of MD Financial Advisors, is here to talk about the types of advice that should be heeded, and advice that should be given a wide berth. Enjoy!

About Ms. Vessenes:

Ms. Vessenes works with over 300 physicians and dentists from Hawaii to Cape Cod. Her firm uses a team of experts to provide comprehensive financial planning to help doctors build their wealth and protect their wealth while reducing taxes now and in the future. Katherine is a longtime advocate for ethics in the financial services industry; and has written three books on the subject of investment strategies. She has received many honors and awards including: numerous tributes from Medical Economics as a top advisor for doctors, multiple 5-Star Advisor Awards, honored as a Top Woman in Finance, in addition to being selected to be on the CFP® Board of Ethics. Katherine can be reached at: Katherine@mdfinancialadvisors.com or 952-388-6317. Her website: www.mdfinancialadvisors.com.

Top Worst Financial Tips 

(1)You can’t get rich working a 9 to 5. 

With proper money management skills, your 9-to-5 CAN MAKE YOU RICH. The key is putting your money to work for you with every single paycheck and the earlier you start, the earlier you can achieve financial freedom and retire. 

Here are 5 ways to build serious wealth with your 9 to 5 job. 

• Take advantage of company-sponsored retirement accounts. I always signed up for 401(k) and Roth IRA plans when they were offered, and many of my employers matched 4% of my 401(k) contributions. That’s free money.

• Ask for raises and promotions. You may not always get a “yes”, but sometimes, you just need to ask. I asked four times for raises in my career and got the “yes” three out of the four times.

• Show up every day. Work ethic has a way of improving your “luck”. Be a team player. Do what you say you’re going to do. The bar is set pretty low these days. Showing up is half the battle.

• Switch companies regularly. Every time I moved to a different company, I got a 15 to 20% raise. Taking another position is a great opportunity to ask for more money. In fact, it’s a natural part of the process!

• Avoid bad debts. I never took out high interest loans. I never paid a single dime of interest on my credit cards. Debts will kill your chances at building wealth regardless of what you do for a living.

(2) Follow your passion. 

Though it sounds good on the surface, this is bad advice for most of us. Here’s the problem: Your passion won’t pay your bills, but your strengths will. 

Pursue a career that aligns with your strengths. Maximize your earning potential. 

(3) Save 10% and you’ll be set. 

This is largely outdated financial advice. Why? 

• Life spans are lengthening 

• Taxation is on the rise
• Jobs are changing
• Inflation 

A standard 10% savings rate won’t cut it for most of us any longer. Fund your 401(k) and Roth IRA. Build an emergency fund. Aim to save and invest at least 20% of your paycheck. 

(4) College is useless. 

College graduates earn more than non-grads. College doesn’t need to be as expensive as we tend to make it. Here are three ways to bring down the cost of college to a manageable level. 

A.    Go to a community college: The average yearly cost to attend a community college is only $4,800 for an in-state school, which is a mere fraction of the cost of a traditional 4-year university. 

B.    Instead of going straight to the 4-year school, start at a community college for two years, then jump over to a 4-year school to finish out your degree. 

C.     Go in-state: Believe it or not, those out-of-state schools aren’t necessarily “better” just because they are out of state. In-state makes college cheaper. 

You will save 10s of thousands of dollars by going to an accredited in-state university for the same (or similar) degree. This theory applies to private schools as well. Don’t make yourself believe that you need that high-priced education. 

Get a marketable degree: This tip won’t necessarily make college cheaper, but it may drastically shorten the time that it’ll take to earn back your money. Marketable degrees are degrees that companies are actively looking for and have high average salaries and good job prospects.