96% of seniors make this money mistake


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    Could 99% of investors be wrong?

    As it turns out, yes.

    According to a statewide survey by CNBC and investment app Acorns, only 1% of Americans hire an employee to manage their finances. This number increases with age, but only just barely: 2% of 55 to 64 year olds do this and 4% of 65 year olds or older.

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

    Additionally, if your investments in a 401 (k) plan are mostly mutual funds, you already have professional advice as the fund managers are already paid to take the right steps.

    But this is where the amateur approach to money management goes from adroit to stupid: when your nest egg reaches the level that small tweaks can make big differences.

    A mistake that cost you millions?

    Consider this: if you save $ 500 per month for 40 years and have an average annual return of 5%, you will end up with nearly $ 725,000. Double that return to 10% and you will retire with nearly $ 2.7 million.

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

    So, if you’re sitting on significant savings, here’s some simple pieces of advice that could change your life: Have a professional advisor at least take a look at where you are and what you are doing.

    Even if you don’t hire a consultant on a permanent basis, a quick, simple, and inexpensive review can make all the difference.

    If an outside expert review shows you are doing everything right, this clean health certificate will give you peace of mind.

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

    How to get help

    According to an independent study, people who work with a financial advisor are more comfortable with their finances and can end up with around 15% more money to spend on retirement.

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

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

    Nowadays there are free online services that will help you find your ideal financial advisor in no time.

    You fill out a short questionnaire and then you will be matched with up to three local fiduciary financial advisors, each of whom is legally required to work in your best interests. The process only takes a few minutes and, in many cases, you can be connected straight away to an expert for free retirement advice.

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

    What do you have to lose? It could make you richer and is definitely the perfect recipe for replacing doubt with peace of mind.

    Bonus: stay informed

    Whether or not you choose to hire a financial professional, it is always worth staying informed.

    There are many sources of money news, but one of the best is the completely free Money Talks newsletter.

    More than a million Americans have reported saving an average of $ 991.20 per person just by reading our newsletter. It gives you a daily dose of specific advice to help you earn more, spend less, and invest like a pro.

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    Disclosure: The information you read here is always objective. However, sometimes we get compensation for clicking links in our stories.