Ask An Expert

What’s the biggest mistake you see people make with their investments?

Joann North

Answered By

Stephanie Xenos

steph@themoneymuse.co

Question:

What’s the biggest mistake you see people make with their investments?

Answer:

Believe it or not, the biggest mistake I’ve come across (with multiple clients) is them diligently putting money into an IRA, but never investing it.

One of my clients had been contributing to her Roth IRA for 30 years, wondering why her money wasn’t growing like the graphs she’d seen, only to discover that that entire time her money was sitting in cash.

With 401k plans, you are often forced to choose an investment. But with self managed accounts like IRAs, you are responsible for selecting the investments and actually completing the transaction, once the money is in your account.

If you invest $500 a month for 30 years, this mistake can be the difference between retiring with 180k versus 3+ million!

Don’t let this mistake happen to you!