96% of seniors make this financial mistake


Krakenimages.com / Shutterstock.com

Could 99% of Investors Be Wrong?

As it turns out, yes.

According to a national survey by CNBC and investment app Acorns, only 1% of Americans employ help to manage their finances. This number rises with age, but just barely: 2% of those aged 55-64 do, and 4% of those 65 or older.

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

Plus, if your investments are primarily 401(k) plan mutual funds, you already have professional advice, since fund managers are already getting paid to take the right steps.

But here’s when the amateur approach to money management goes from clever to dumb: when the nest egg reaches the level where small tweaks can make big differences.

A mistake costing 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 roughly $725,000. Double that return to 10%, and you’ll retire about $2.7 million.

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

So, if you’re sitting on big savings, here are some simple tips that could change your life: Let a professional advisor at least take a look at where you are and what you’re doing.

Even if you don’t permanently hire a consultant, a short, simple, and inexpensive review can make all the difference.

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

If it shows that you can achieve more, the sooner you find out, the better.

How do I get help

According to an independent study, people who work with a financial advisor feel more comfortable 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 when you’re nearing retirement. But this begs the question: Who can you trust?

In the past, you had to turn to a stranger and take advantage of your chances. But that was then.

These days, there are free online services that make discovering your ideal financial advisor easy.

You fill out a short questionnaire, and then you’re given up to three local credit financial advisors, each of whom are legally obligated to work for your benefit. The process only takes a few minutes, and in many cases you can immediately call an expert for a free retirement consultation.

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

What do you have to lose? It can make you richer, which is definitely the perfect recipe to replace doubt with peace of mind.

Bonus: Stay informed

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

There are plenty of financial news sources out there, but one of the best is the totally free Financial Talks newsletter.

Over 1 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 tips to help you achieve more, spend less, and invest like a pro.

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

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