10 Dumb Mistakes Nearly Everyone Over 40 Makes

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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

One of the best ways to protect your savings is diversification. Have money in different types of investments: ideally, ones that can go up when others are going down. For example, stocks tend to do poorly when inflation and interest rates are rising and there’s political turmoil brewing.

But there’s one investment that thrives in this scenario: gold.

Keep in mind, though, that not everyone in the gold business is on the up-and-up. Be careful whom you deal with.

Birch Gold Group is a trusted company to consider. For more than 20 years, Birch has been the go-to safe haven for investors looking to protect their assets from financial turmoil.

They’ve helped customers invest since 2003 and have earned a seal of approval from trusted voices like Ron Paul, Steve Bannon and Ben Shapiro.

Birch Gold maintains an A+ rating with the Better Business Bureau, an AAA rating from Business Consumer Alliance and a five-star rating from ConsumerAffairs.

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2. They don’t get a second set of eyes

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.

(Please carefully review the methodologies employed in the Vanguard white paper, "Putting a Value on your Value: Quantifying Vanguard Advisor's Alpha."

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3. They let home repairs drain their savings

Home repairs aren’t cheap. Whether it’s a leaky roof or a broken appliance, your home can quickly become a nightmare and cost you hundreds or even thousands of dollars to keep up.

But you don’t have to worry. Luckily, with a home warranty company called American Home Shield, you can safeguard yourself against giant repair bills. From home appliances to electrical, plumbing, heating and cooling systems, it can all be protected.

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 American Home Shield is America’s top home warranty company with more than 17,000 contractors and two million members.

All over America, homeowners are choosing AHS for the savings, service and peace of mind that it delivers

Shop a plan that fits your budget

4. They don’t leave their family richer

You’d move mountains for your family, but what if you’re not around? Who’ll keep the household running? That’s where life insurance saves the day. Unless your kids are already off the payroll and you’re rolling in dough, you’ll want coverage.

Enter SBLI (Savings Bank Life Insurance). These folks make getting life insurance easier than ordering pizza. Just a few clicks from your couch, no doctors poking or prodding. Answer some quick health questions, and boom — a personalized quote in under 5 minutes.

With SBLI, you can snag term life insurance worth up to $5 million. Or go for the gusto with trusty whole life. Either way, it might cost you less per month than your daily caffeine fix.

Over 1,000,000 families have trusted SBLI with over $187 billion in coverage since 1907. They’re legit and they’ve got your back.

Why put it off? Protecting your loved ones is kind of a big deal.

Get a free, no-obligation quote from your friends at SBLI right now.

Get a free quote today

5. They lose $610 a year on car insurance

If you’re like most Americans, you’re probably paying too much for car insurance. But shopping around for a better deal can be a hassle.

Or is it?

Take a few seconds and check out Provide Insurance, the largest online marketplace for insurance in the U.S. Provide Insurance lets you compare quotes from more than 175 different carriers in the blink of an eye.

Just answer a few questions about yourself and your driving history. Then Provide will show you the best options for your needs and budget.

You could save up to $610 a year on car insurance by using the Provide marketplace. That’s money you could use for traveling, paying down debt or simply having more fun.

See How Much You Could Save Today

6. They let medical costs empty their nest egg

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.

“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.

Note: GoldenCare does not operate in Alaska, Florida, Hawaii and Washington.

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7. 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.

Note: This is a testimonial in partnership with Fundrise. We earn a commission from partner links on moneytalksnews.com. All opinions are our own.

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8. They don’t get help with debt

National Debt Relief is one of the most respected providers of debt relief in the country. They’ve helped more than 500,000 people, are A+ rated by the Better Business Bureau and also top-rated by TopConsumerReviews, TopTenReviews, ConsumersAdvocate and ConsumerAffairs.

How it works: You fill out a form on the company website, then a debt coach will call you to learn more about your situation. If they can help you, they’ll set you up with an affordable plan that works for you — and give you an estimate of when you can expect to be debt-free! There’s also no upfront fee and no obligation to get started.

National Debt Relief can help you with almost any unsecured debt, like credit cards, personal loans, medical bills, repossessions … even some student loan debt.

Ready to start a new, happier chapter of your life? Click here and see what they can do for you!

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9. 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.

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10. They earn nothing at the bank

What’s the difference between a half-percent and 4% interest?

If you’re like a lot of savers, you’ll say, “Who cares? Neither one amounts to much.” But that’s a mistake, and the longer you make it, the more it will cost you.

Example: Put aside $500 a month for 30 years at 0.5% interest, and you’ll end up with $195,000. Nice!

But if you can raise that rate to 4%, you’ll end up with more like $350,000. Nicer!

Doesn’t it make sense to earn an extra $155,000 with no additional effort and with no additional risk? That’s exactly why it pays to shop your savings and find the highest-paying FDIC-insured savings account.

Especially when it’s so simple. There are tons of free online comparison sites, like Fiona, that can help you find top rates on insured savings in seconds. So take a few seconds and check it out.

Check Out Fiona Today

Bonus: Grow your savings by $1,000 every year

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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.

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