Three financial regrets you will never hear
Here are three financial regrets that I have never ever heard anyone say, in 12 years of trying to master this profession.
The first is "I really regret having saved and invested too much"
As I mentioned a few weeks ago in a blog post, no one regrets saving or investing too much. It is only EVER the other way around. If you're wondering how much to invest or save, always think 'more'. You'll never regret it.
The second is "I have deep regrets over paying my mortgage off and clearing all of my debts".
This comes up a lot in the sense of clients considering to clear their mortgage or to invest some money. With interest rates continuing to be very low (as they have been for a decade), we can get tempted to want to invest money in areas that are "likely" to make a better return than paying off cheap debt.
This is a game that you can win or lose at, so advice and careful consideration should be sought. But I always overlay this conversation with the fact that I am yet to meet a single bugger who regrets finally paying that damn mortgage off!
The third is "I will never forgive myself for being over insured when it comes to life and illness cover, it was just too convenient when it paid out and I needed it most."
Again, this writes itself. To be fully insured in case something bad happens, you need Life Insurance, Income Protection and Critical Illness. This can be a fairly hefty monthly outlay to keep these premiums going.
Often people question if they really need the cover, particularly if premiums are going up. I always point to the fact that the unfortunate person who needs to make a life or health insurance claim, is always eternally grateful for their decision to take the insurance out and to stick with it.
Of course you still get many people who spent a lifetime on insurance and never needed it. Well, my, those really are the lucky ones. Money very well spent on something you never wanted to need. Win, win.
Alfie Mullan, January 2020