A financial advisor who has managed over $100 million over the years has revealed the biggest money mistakes people make and how to avoid them. Terry Tully, 43, from New Orleans, Louisiana, spent nearly two decades helping people prepare for retirement and grow their bank accounts.
During a recent interview, Tully explained that many people unknowingly miss out on earning thousands of dollars due to simple preventable errors. These include not taking advantage of employer benefits, not knowing what stocks to invest in, or paying unnecessary fees.
Believing It's Too Late to Start
Tully stressed that it is never too late to start growing your bank account and investing in your future. He has worked with people in their 40s and 50s starting from zero. The biggest risk is doing nothing, not starting late.
Not Taking Advantage of an Employer Match
If you have a 401(k) account, ensure you contribute enough to get the full employer match. Tully calls this free money that you are leaving on the table. Even with hidden fees, it is still a valuable benefit.
Not Staying Consistent with Investing
Tully recommends investing extra funds in low-cost index funds, which are cheaper and easier to understand than traditional mutual funds. The key is consistency: invest every month, even if it's just $50. He suggests investing 15 to 20 percent of your income, but starting with whatever you can afford is most important.
Ignoring or Overlooking Fees
Fees are the silent killer of investments. One percent may seem small but can cost hundreds of thousands of dollars over time. Tully advises reviewing every fee and asking for lower-cost options. Fees are guaranteed, returns are not.
Panicking if the Market Drops
Market drops of 10 to 20 percent are part of the process. Instead of panicking, view them as the market being on sale. The winners are those who keep going when others hesitate.
Increasing Spending as Savings Build
Tully warns against lifestyle creep: as income grows, expenses should not follow. Avoid buying bigger houses, nicer cars, or more vacations to prove something to others. Focus on long-term growth rather than short-term gratification.
Retirement is a slow, steady build, not a sprint. By avoiding these common mistakes, anyone can set themselves up for financial success.
