As we get older, we tend to think we’re invincible. We’ve made it this far, so what could possibly go wrong?
The fact is that no one’s perfect. Even the most successful people make dumb mistakes from time to time. No matter how much planning you do, there’s a good chance you’ll make some costly blunders over your lifetime.
Here are some of the most common mistakes people over 40 make and how to avoid them.
1. They don’t diversify their wealth
Putting all your money in one place – stocks, bonds, crypto, whatever – is a recipe for losing wealth, not building it. Diversification is key to financial security. Here’s an easy way to start: Buy gold and/or other precious metals from Goldco.
Gold is an essential ingredient for modern electronics – a pretty secure industry. Silver is, too, and Goldco gives up to $10,000 worth of it to those who open qualified accounts.
Paper currency is highly regulated by law, and more can always be printed without any true backing. But ever since humans first figured out how to turn shiny rocks into valuable commodities, precious metals have represented worldwide value.
Adding them to your investment portfolio is a step toward wealth. Should you need to take some of it back out, Goldco’s “Highest Price Buy-Back Guarantee” means you’ll get top dollar for your holdings.
Goldco is the only precious metals company personally recommended by Fox News personality Sean Hannity. The company also earned an A+ rating from the Better Business Bureau and an AAA rating from the Business Consumers Alliance. Satisfied customers on Trustpilot, Google Reviews, Trustlink and ConsumerAffairs.com give Goldco 5-star ratings.
Protect and secure your wealth. Get your free investors kit today.
2. They let medical costs burden the family
Here’s hoping that your retirement years are active, healthy and vibrant and that you’re able to function as you always have, right up to the time you shuffle off this mortal coil.
But don’t bet on it. According to the U.S. Department of Health and Human Services, 7 in 10 people who turn 65 today will probably need some kind of long-term care.
Think you can’t get long-term care (LTC) insurance after age 40? Think again. GoldenCare writes LTC coverage for most people. (Unless they live in the four states where GoldenCare doesn’t operate: Alaska, Florida, Hawaii and Washington.)
“But won’t Medicare take care of all that?” Nope. Medicare doesn’t cover long-term custodial care — and paying for it out of pocket could take a huge chunk of your retirement savings. That plus inflation could mean near or total depletion of your nest egg.
Without LTC insurance, your options aren’t great: running through savings, borrowing money, burdening your family with your care, and possibly losing independence because you can’t live on your own.
It’s impossible to say whether your current health will stay good. That’s why investigating long-term care insurance is so important: It protects you and your family.
Plan today for a secure tomorrow. Get your fast, free quote now.
3. They fall victim to identity theft and fraud
In 2021, the FTC reported $5.9 billion was lost to identity theft and fraud, including romance scams, investment fraud, government impersonations and tech support fraud.
Don’t be a victim. With a service called Aura, you can protect yourself and your family from identity theft, fraud, and online threats.
It only takes a few minutes to enroll, then Aura will constantly scan for threats to your identity. Aura watches your bank, retirement, and other financial accounts. It also puts out monthly credit scores and provides credit monitoring, including “near real-time” alerts for any queries on your credit profile.
Aura is confident: All plans come with $1 million in identity theft insurance on eligible losses, 24/7 U.S.-based dedicated support, and up to four times faster fraud alerts than competitors, according to the site. They also offer a 60-day money-back on annual plans purchased through its website.
The cost? As low as $9 monthly, and up to 50% off right now, depending on the plan. That’s pretty low for peace of mind knowing that you are safe online.
Don’t let scammers ruin your life. Protect yourself and your family now.
4. They let home repairs drain their savings
Having homeowners insurance is essential – but it also isn’t enough. Your house is full of systems and appliances that can (and will!) break down, and that isn’t covered by homeowners insurance. Finding a reputable repair company on short notice can be challenging, and the costs can be terrifying – especially if two or three things break down in the same year.
Don’t struggle to pay for repairs. Protect yourself against them, with American Home Shield. This company is Consumer Advocate’s No. 1 choice for home warranties. Depending on the plan, they cover almost everything that can go wrong: heating and cooling systems, electrical systems, plumbing systems, kitchen appliances, laundry appliances and more.
When something goes wrong due to normal wear and tear, you just call Select Home Warranty, day or night. The company has a wide network of reputable repair folks who will fix what’s wrong.
AHS protects your stuff no matter the age. Their plans cover up to 23 appliances and systems, and if they can’t repair it, they’ll replace it. That’s why AHS is America’s top home warranty company with more than 17,000 contractors and two million members.
Don’t let home repairs empty your bank account. Get a free quote in 30 seconds.
5. They make dumb investment decisions
Obviously, you’re no fool when it comes to making money. If you were, you wouldn’t be reading this.
But there comes a time in life when it makes sense to get a second opinion. Sure, you’ve been successful at growing and managing your savings. But the more you have, the more attention your savings require and the greater the ramifications of screwing up.
A study by Vanguard found that, on average, a hypothetical $500,000 investment over 25 years would grow to $1.7 million if you manage it yourself, but more than $3.4 million if you work with a professional. In other words, an adviser-managed portfolio would average 8% annualized growth over a 25-year period, compared to 5% from a self-managed portfolio.
Obviously, there are no guarantees a professional will do better than you. But getting a second opinion from a pro certainly can’t hurt. Even if you don’t need help picking investments, they can help you create a plan, maximize your Social Security, protect your assets and offer you peace of mind by ensuring you’re on the right track.
These days, there are no-cost online services that make it easier than ever to find qualified financial advisers in your area. For example, SmartAsset. You fill out a short questionnaire and are instantly matched with up to three local fiduciary financial advisers, all legally bound to work in your best interests.
The process only takes a few minutes, and in many cases, you’ll be offered a free consultation.
Nothing to lose, lots to potentially gain: Take a minute and check it out right now.
6. They drown themselves in debt
It’s tough to build wealth when you’re overwhelmed by debt. Here’s a not-so-fun fact: The Federal Reserve Bank of New York reported an increase in the total amount of debt in the American household, rising by $312 billion to $16.15 trillion in the second quarter of 2022.
If you’re buried in debt, Freedom Financial Network can help you dig your way out. Two common solutions are debt consolidation and debt relief.
With consolidation, Freedom Financial combines what you owe into a single, fixed-rate loan. If your situation calls for debt relief, Freedom Financial will negotiate with your creditors to reduce what you owe. No matter which option you choose, you’ll get a thorough financial assessment and a personalized plan. You’ll pay less interest overall and be able to get back on track financially.
Debt happens, but it can be defeated. Get your free, no-obligation consultation now.
7. They waste thousands on auto repairs
As a nation, we’re hanging on to our cars a lot longer: The average U.S. vehicle is now 12.1 years old. Trouble is, most of the big-ticket auto repairs happen long after the warranty has expired.
Don’t pay thousands out-of-pocket. Protect your investment with CarChex.
A CarChex vehicle protection plan will work at any licensed repair facility in the United States, from independent shops to dealers.
The shop diagnoses your car, gets approval from CarChex, does the repair, and then gets paid directly from the company. CarChex can save you hundreds – even thousands of dollars in covered repairs.
You can choose from among five different plans. Their plans can last up to 250,000 miles on cars up to 20 years old. Plus, all plans include benefits like 24/7 roadside assistance, towing, rental cars, gas delivery, and more.
CarChex is the real deal. They have an A+ Rating by the Better Business Bureau and are recommended by companies like Carfax, Kelley Blue Book and CarBuyingTips.com.
Protect yourself from costly auto repairs. Get your fast, free quote today.
8. They lose $500 a year on car insurance
Auto insurance is a must. You know what isn’t a must? Paying too much for coverage.
Luckily, with a comparison site called QuoteWizard, you can get a better deal in just minutes.
QuoteWizard is one of the largest online marketplaces for insurance in the United States. Just answer some questions about yourself and your driving record, and this free service will compare prices from more than 80 insurance providers and send you the top deals.
According to QuoteWizard, you’ll save up to $500 a year. Plus, it’s free to use, and it just takes two minutes to get your new rate.
Imagine what you could do with an extra $500 every year in your budget. Emergency fund? Extra payment against your mortgage? Retirement planning? It’s your call. Point is, those are dollars that are now working for you instead of for someone else.
Don’t overpay for car insurance. Enter your ZIP code here to get started.
9. They earn zero interest at the bank
Some banks and credit unions pay as little as 0.01% interest on savings accounts. That’s just sad.
Move your money to Barclays Online Savings, though, and you’ll earn 2.40%, one of the highest rates in the country. That’s 240 times as much interest.
Plus, there’s no monthly minimum balance, no monthly maintenance fees, and Barclays banking services are provided by an FDIC member bank, so your account is fully insured.
Ready to boost your savings? Open an account today.
10. They don’t generate wealth with real estate
Real estate has long been a path to wealth. But you need to be wealthy to get started, right?
Wrong. For as little as $10, Fundrise can get you started on that path to potential riches. In the way that stockholders buy pieces of a company, Fundrise lets you buy into real estate properties.
On average, Fundrise investors earned a 25% increase within three years; if they held on for five years, that increase was more than 50%. In effect, you’re a landlord without having to do things like run background checks or serve eviction notices.
People are always going to need a place to live – and recent rent jumps make real estate investing much more profitable. Apartment prices went up almost 18% in 2021, according to data from Harvard’s Joint Center for Housing Studies.
Take two minutes, sign up with Fundrise, and watch your money grow.
Bonus: Grow your savings by $1,000 every year
If there were just one easy thing you could do, every day, to save more money, to create more wealth, you’d do it, right?
Well, here it is: Take just five minutes every day and check out the totally free Money Talks Newsletter. More than a million Americans have, and they’ve reported saving an average of $991.20 each by checking our news and advice.
Get the best tips and advice to make, save, and grow your money daily. Sign up for our free newsletter today.
Moshe Berman
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