Thursday Oct 21, 2021

96% of Seniors Are Making This Money Mistake

Rich man in a panic over lost money

96% of Seniors Are Making This Money Mistake

Information about 96% of Seniors Are Making This Money Mistake

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Could 99% of investors be wrong?

As it turns out, yes.

According to a national poll conducted by CNBC and investing app Acorns, only 1% of Americans hire help to manage their finances. That number goes up with age, but just barely: 2% of those 55-64 do, and 4% of those 65 or older.

Obviously, when you’re young and broke, working with a pro is silly. There’s not much to manage, and you’ve got all the time in the world to learn about investing and build your savings.

Plus, if your investments are primarily mutual funds in a 401(k) plan, you already have professional advice, since the fund managers are already being paid to make the right moves.

But here’s when the amateur approach to money management goes from deft to dumb: When your nest egg reaches the level that little tweaks can make monster differences.

A mistake that costs you millions?

Consider this: If you save $500 a month for 40 years and earn an average annual return of 5%, you’ll end up with nearly $725,000. Double that return to 10%, and you’ll retire with almost $2.7 million.

Two million more: That’s a life-changing difference.

So, if you’re sitting on sizable savings, here’s some simple advice that could change your life: Allow a professional adviser to at least take a look at where you are and what you’re doing.

Even if you don’t hire an adviser permanently, a short, simple and inexpensive review could make a difference.

If a review by an outside expert reveals you’re doing everything right, that clean bill of health will offer peace of mind.

If it reveals you could be making more, the sooner you find out, the better.

How to get help

According to one independent study, people who work with a financial adviser feel more at ease about their finances and can end up with about 15% more money to spend in retirement.

So, getting a review by an objective professional obviously makes sense, especially as you approach retirement. But that begs the question: Who can you trust?

In the past, you’d have to turn to a stranger and take your chances. But that was then.

These days there are no-cost online services that make discovering your ideal financial adviser a snap.

You fill out a short questionnaire, then get matched with up to three local fiduciary financial advisers, each legally bound to work in your best interests. The process only takes a few minutes, and in many cases you can be connected instantly with an expert for a free retirement consultation.

Use this free matching service to connect with three qualified financial advisers in your area in five minutes.

What have you got to lose? It could make you richer, and it’s definitely the perfect recipe for replacing doubt with peace of mind.

Bonus: Stay informed

Whether or not you choose to utilize the services of a financial professional, it always pays to stay informed.

There are plenty of sources of money news, but one of the best is the totally free Money Talks Newsletter.

More than a million Americans have reported saving an average of $991.20 each simply by keeping up with our newsletter. It gives you a daily dose of specific advice to help you make more, spend less and invest like a pro.

It takes less than five seconds to subscribe and, if you don’t like it, less than five seconds to unsubscribe. Sign up for our free newsletter right now and see what you’ve been missing.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.