The Biggest Investment Mistake You Can Make

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3:16Today, we're going to talk about one of the most expensive mistakes you can make with your money. And it's one that a lot of people don't even realize they're making. Are you ready for it? It's waiting to invest. Yeah, you're sitting on the sidelines and that can cost you big time. Today, I'm going to prove it. I get it. Investing can be intimidating. There is so much jargon, so many numbers and so many opinions. Maybe you're thinking, I'm doing just fine with my salary and I don't need to invest. Thank you very much. Or I need to learn more before I dive in. And trust me, I've heard all the excuses and I even used a few of them myself back in the day.

3:51But here's the truth. When it comes to investing, time is literally money. The biggest factor in growing your wealth? It's not about picking the hottest stock or timing the market just right. You may have heard me say that the ROI on investments typically doesn't come from timing the market, rather how much time you are in the market. It is as simple as that. The longer you're invested, the more it can grow thanks to the magic of compound interest. I told you I would prove it and I will. Let's say you invest$5 ,000 in the stock market. Historically, the S &P 500 has returned about 10 % a year.

4:25Now, of course, some years are higher and some years are lower, but 10 % is a good average for us to illustrate this point. Here's how much you could have by the time you're 65 depending on when you start. If you start at 20 years old, you'll invest a total of$225 ,000. By 65 years old, that could grow to around$3.6 million. If you wait until 30, you'll invest $175k. By the time you're 65, you'll have about$1.4 million. That's a lot, but look at the difference. That's over$2 million for just waiting 10 years. If you start at 40, you'll invest$125k and you'll end up with about 490 grand. And if you wait until you're 50, you'll invest 75 grand and you'll end up with only about 160 grand.

5:10The pattern is obvious. The earlier you start, the more compound interest has to do its thing. And look, I get it. When you're in the thick of your career, retirement feels so, so far away and you have other priorities. But even a 10-year delay could cost you millions. That's the power of starting early. Okay, but what if you're listening to this and you're not 20 years old. Maybe you're 30 or 40 or 50 and you're thinking, great, I missed the boat. First of all, it is never too late to start. Every dollar you invest today is better than waiting another year. And even if you start later, you can still build wealth by investing consistently.

5:46So how do you get started? Well, if you're the DIY type, you can open a brokerage account and start investing in index funds or ETFs that track the S &P 500. These are low cost and historically reliable ways to grow your money. That's how I started. But a financial advisor can be a game changer if you're not sure where to start, or if you want the confidence of knowing that someone who literally does this for a living has your back. A good financial advisor can help you create a personalized plan, navigate complex tax questions, and keep you on track when the market gets bumpy. But just a heads up, not all advisors are created equal, so please make sure you understand how they get paid.

6:22Some charge a flat fee, some take a percentage of your investments, and others get commissions on the products they sell. Choose one whose incentives not only align with yours, but are yours. That's why I really love personally creative planning. Advisors at Creative Planning are fiduciaries, which means they are legally obligated to act in your best interest and can help you maximize your money's potential. For today's tip, you can take straight to the bank. If you want help with an investment plan that's completely tailored to you and your goals, check out Creative Planning at creativeplanning.com slash Nicole.

6:54You can learn how they can help and get a free consultation call at creativeplanning.com slash Nicole.

7:03Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Lavoie. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.

7:52Thank you.