Episode Number: 249

Episode 249- Top 3 Investing Mistakes That Are Costing You Thousands Of Dollars

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Jamila Souffrant 0:04

So, the three things I'm going to talk about and ways in which you are potentially losing money, future earned investments, and that you can earn more money is: One, actually not picking the actual investments once you open up your investment account. Two, making sure and not making sure you're invested in the right investments. And three, leaving your investment at an old job or somewhere that you don't even know it even exists. And literally, it's just sitting there not doing what it's supposed to do for you.

Intro 0:34

T-minus 10 seconds. Welcome to the Journey To Launch Podcast with your host, Jamila Souffrant. As a money expert who walks her talk, she helps brave Journeyers like you get out of debt, save, invest and build real wealth. Join her on the Journey To Launch to financial freedom in five, four, three, two, one.

Jamila Souffrant 0:55

years. Hey, journeyers Welcome to an episode of the journey to launch podcast. This will be a solo episode. As promised, I have a bunch of solo episodes on the list on the docket to record. And I'm hoping that this one will be a really valuable and beneficial episode for you to hear. And I'm talking about like real value, meaning I want you to listen to this and potentially invest or earn and you'll get what I mean as we continue on 1000s from this episode, like I want you to be able to discover 1000s of potential returns feature returns even immediate from listening to this. Okay, so what are you talking about to me, we'll get to the good stuff. All right, I will let's get into it.

Now a word from today's sponsor, DCU. What's the point of paying off debt and reaching your financial goals if the journey isn't fun? There's a way to enjoy your life and have fun now, you just need to create a plan that leaves room for the expected and unexpected things that are bound to happen. Finding that balance so you can feel good about your life and your long term goals is essential. You need a financial institution that gets you and works with you to accomplish your goals. at DCU, Digital Federal Credit Union, you're not just another customer, you're a member who matters. DCU places an enhanced focus on providing financial education resources to members by offering learning modules on key financial topics like budgeting, saving for the unexpected, building credit, and much more. DCU also offers a secured credit card that helps individuals establish or improve their credit by borrowing securely against their DCU savings account. To learn more, check out dcu.org.

Oh one more thing before we get started, I am opening up doors to my signature course, map your path to financial independence really really soon. And if you want to get on the waitlist, you should go to journeytolaucnh.com/ficourse. Thats journeytolaucnh.com/ficourse and if you're on the waitlist, you'll get some special bonuses that no one else gets. And you'll get to know about the course opening before anyone else. So you wanna go ahead and sign up. And this course is my signature course. It's my 10 steps to mapping out your path to freedom. Its literally the steps I took to go from a crazy, soul sucking commute that I did everyday, to this life of freedom that I have now. And I can't wait for, if you're interested, to join me on this path. So once again, go to journeytolaucnh.com/ficourse. Depending on when you're listening to this, doors may be open, but if you can get in, right now, on the waitlist, go ahead and sign up, you'll one the first to be notified when I open doors. Which will be really, really soon. journeytolaucnh.com/ficourse.

If you want the episode show notes for this episode, go to journeytolaunch.com, or click the description of wherever you're listening to this episode. In the show notes, you'll get the transcribed version of the conversation, the links that we mentioned, and so much more. Also, whether you are An OG Journeyer or are brand new to the podcast, I've created a FREE Jumpstart Guide to help you on your financial freedom journey. It includes the top episodes to listen to, stages to go through to reach financial freedom, resources, and so much more. You can go to journeytolaunch.com/jumpstart to get your guide right now. Okay, let's hop into the episode.

I want to talk about basic but common investing mistakes that are costing you $1,000s, if not hundreds of $1,000s of dollars. I want to talk about why you have more money than you actually think. You know, having more money and when I say, "I want you to make money with the money you already have," it's really about not going out to actually earn more money, or to even go, you know, look through your expenses and cut things out, which by the way, all of those things are important and can help a lot. This strategy is more about: Let's be magicians, in a way. With the money that you already have, let's find a way to make more from that.

So it's not making you go out to earn more, it's not making you cut something back in your in your latte budget. It is literally what do you have that's being invested in? How can we leverage that to make you more money? And I want to recap, a formula that I've talked about in the past, I'm going to reference this and kind of go back and forth. I have my notes here, I'm going to try and follow and not get all turned around, because we will be talking about some numbers here, but I'm hoping it's not going to be too deep, where you won't be able to follow the numbers and returns that I'm talking about.

But the basic formula I want to talk about is what I believe is what we're all striving for. If we can break down what we're trying to do in this life, what we're trying to do with our money, it comes down to this: Our income, minus our expenses, equals our gap. And that gap, when I say gap, meaning what you bring in, so how much you bring in minus how much is going out equals a gap of money, you know, a pool of money. And that money is what you do or what you use to pay off debt, to save, to invest more. You can use that gap however you want, right?

Now, here's a more up level, or a advanced version of this formula that I just said. Because what I think is equally as important as earning more or spending less is your habits and mindset. I don't believe that you can actually accomplish sustainable income growth, or cut back on expenses, if that's what you want to do, if you don't have the right habits and mindset. So, the way I look at it is, your habits and mindset times like almost multiplied to the actions of earning more and spending less equal your gap. And with that gap, you can split that whatever way you want. You can split that with your discretionary expenses, or reaching your financial goals, which include paying off debt, saving, and investing. It's that balance between the lifestyle of today that you want to live, and then your goals for tomorrow and the long term. So when I talk about finding more room in your gap, I'm gonna, in this episode, talk more about it in terms of investing. So how can you find a way to earn more money with what you're either currently investing right now, or maybe you're going to find other ways to invest your money.

I'm talking about seeing more returns with the resources you already have. Increasing that gap to make progress to your lifestyle goals today and your financial goals tomorrow. My goal is that you find at least $1,000, or even hundreds of 1,000s of dollars, like found in potential future earnings of your investment because of this podcast. And if you do, please let me know. Please let me know. Now I will say, this will take some effort on your part. So no, I'm not going to go ask you to go work extra shifts, or think of, you know, a new business to get this money, but I will ask you to spend a few minutes, maybe an hour, to get the kind of returns I'm talking about. It may involve calling customer service, tracking down some old logins, which are super annoying, I know. I've been wanting to put that off myself, but I'm telling you, it can be well worth it. And even if it doesn't, like, net, you like a lot of money or some money, it can help maybe someone you know. Think about what it would mean to find that you can actually earn $1,000 or $200,000 more in your investment account by doing something like this.

Now, I want to just preface this whole conversation by saying, I am not a financial adviser. I am not your financial adviser. This is going to be actually general investing tips. I'm not going to tell you where to invest or necessarily how to invest. Actually the examples I'm going to give are going to be personal examples that I've actually done myself. Myself or my husband, we've seen this in our account, or we've made these changes and have seen this, this return. So again, I just want to, like, say that, because I know investment advice or investing can seem so confusing and overwhelming. And I really, as I always say in my episodes or just any way in which I talk about something, is you have to do your own research. But I think this is going to be almost baseline level enough that you'll see you'll be able to get a real value from this.

Before we start, I want to say also that we're going to have to focus a little bit on mindset and habit here. I'm not going to get too much into that. Remember the formula that I talked about before? About, you know, your income minus your expenses, equal the gap. And then I said, your habits and your mindset are going to make all that work, right? And so some mindset and habit stuff that you may have to just be aware of as you're going through this and you're listening to this. And we think about what you need to do, is I want you to think about increasing your level of patience, when it comes to this stuff. And I mean patience with yourself, ultimately. Patience with yourself, because I get frustrated too, right? I get annoyed, I get frustrated, I don't want to be on hold, I have so much going on in life, that sometimes it feels like I don't have time for this. Or if I don't get something right away. I'm just like, "What's going on?" Right? And I have to remember that I have to be patient with myself and other people. So that's what I want for you. As you're listening to this.

I also want you to allot some time in your schedule, so that you can research and do some of this, some of these things I'm going to tell you to do. And so that can be forward looking. So after you hear this episode, I want you to maybe say, "Alright, I'm going to spend 10 minutes when I get to work. Or 15 minutes on Friday," put in your calendar, "That I'm going to do one of these things that Jamila talks about, so I can see if this is going to work for me." And of course, do your due diligence. That's going to be my other thing. And then again, don't get overwhelmed with everything. You don't have to turn off this podcast episode and do everything right away. Baby steps are totally, totally fine. Okay, so I'm just gonna do with the overview of the three ways in which you are possibly leaving $1,000s of dollars on the table when it comes to investing, or some common mistakes you may be making. And then I'm going to share actual examples. So the three overviews of what you may be doing and where you may be losing money is: One: Picking the actual investment in your investment accounts. So topic one will be, picking the actual investment in your investment account. So hint: Opening up your investment account is just the first step. There are other steps you need to do and if you're not doing them, you are losing out on the actual returns you want to see in your investment account. So that's topic or step one.

Topic number two of how you are possibly leaving 1,000s of dollars on the table, or making a common investing mistake: Is that you need to make sure you're invested in the right investments, meaning investments within your 401k, 403b. I'm mostly going to be talking about retirement accounts here by the way, but the principles of what I'm talking about can really a be applied to any type of investment account.

Number three: Is leaving your retirement investments at an old job, that is not giving you the best returns or has high fees.

So the three things I'm going to talk about and ways in which you are potentially losing money, future earned investments, and that you can earn more money is: One, actually not picking the actual investments once you open up your investment account. Two: Making sure, or not making sure you're invested in the right investments. And three: Leaving your investment at an old job or somewhere that you don't even know it even exist and literally, it's just sitting there, not doing what it's supposed to do for you.

I'm going to walk through three, those three topics, and how I, personally, myself and even my husband, we found that we were making these mistakes, or someone I knew was making this mistake, and then, kind of, just, like, what we did, or how we thought through it, and count out how much money we potentially earned from doing this work. Again, reiterating I am not your financial adviser.

Alright, so let's go to number one: Pick the actual investment in your investment account. Now I know that this happens to a lot of people. It happened to my mom and my sister. I helped them open up Roth IRA accounts, and they opened up their account, but they did not fund the account. So I want to talk about what that means. So what is an investment account? I think I just want to go back to the basics here. I will also want to compare it to something that we all can relate to, because this trips people up a bit, because you think, "Oh, I opened up the Roth IRA account. I opened up or you know that 403b or 457. Like the money, I have an investment account, I'm investing!" And, maybe, but you also have to double check that you are investing that money. So an investment account is an account that holds your investments or cash. And that can be anything like a 401k, your 403b, your 457, a traditional IRA, or Roth IRA, or a brokerage account. So the type of account that is, meaning if it's pre tax retirement, or post tax retirement, like they have different implications, but an investment account is basically, the account that holds your investments. So think of it like a bag. Like, you know, you go to the bag store and there are a bunch of different bags that you can buy or open, right? And you can open up a bag, just because you have-- you opened up a bag doesn't mean anything is in the bag. Your money is not actually growing and earning and invested until you have something in the bag. Until you buy the investments. So, in the case of my mom and sister and some other people that I've spoken to have made this mistake, you realize that, Wow, I can open up this, in this case, Roth IRA, individualize retirement account. Now, Roth IRA is an after tax account. And maybe you realize, "Wow, here's a way that I can also start investing money." You know, you can open that up anywhere, if you're eligible, under the income limits to do that. You can also do a backdoor Roth IRA, but that's a whole nother podcast. So once I convinced my mom and sister, "Like, hey, you know, you guys are eligible to open up a Roth IRA," they did that. I helped them do that, which is partly my fault, but partly their fault too. The next step was to select the investments. So and what happens is, it's easy to forget, because sometimes you open up these accounts at these companies, and it takes a while for the account to be approved, right? Especially, you know, you're doing it online. It may take a few days, a few weeks, for it to be approved, and then you forget about it. You're like, "Well, I'm done with that. Mission accomplished! Opened that investment account!" Not remembering that you have to fund the account. And sometimes you have to make sure you understand the, the user interface of where you're invested, because it may say, okay, connect your your checking account to this investment account. And you may have done that. And so you're like, "Alright, I'm done!" And you may have said, transfer $1,000 from my savings account, to this investment account. And so you think you're done? No, you're not. Because really, what may have happened is the money went straight into a money market account or settlement account. So it's like literally just sitting and the next step that you have to do is choose where you now invest that. And where you invest it, like I said, it's not... not my business, okay? I will say that this is where the due diligence comes in, you know, everyone knows I'm a fan of index funds, but literally, you can pick any type of investment. Mutual fund, index funds, stocks, bonds, right? Like these are all going to be options. If you open up something like a Roth IRA, and you're at an investment firm, and where you can then choose the investment that best fits your goals, your risk tolerance, and what you want to do. And again, I know there are some people listening right now, maybe to you, right now, that you need to go check and make sure that your money is being invested. Also, the other thing, is make sure any returns are, if this is what you want, are being reinvested. So for example, in my account, everything is reinvested. I don't take a distribution of any profits or any gains of my investment accounts. I tell it, I tell any gains to be automatically reinvested. If you don't click it as an option. If that is an option in your investment account, what may happen is, you are getting money, you're getting returns, but it then goes back into your money market account or settlement account, where it's not being invested. And then you may come back at the end of the year and say, "Wait, why do I have $2,000 Just sitting here, not invested in the index fund or the mutual fund, or the bond, or whatever you selected?" Right? So, if this sounds like something that may be happening to you, I need you to go double check that, because you could literally be just remember it a year from now or a couple months from now and then you're not doing what you thought you did, because the money's not growing over time. So that was one.

Now let's move on to two. The next couple of examples that I'm going to share are, kind of, crazy to me, because I actually discovered this a few years ago, that I was making this mistake, where I realized that "Wow, I'm not optimized in my investment accounts. And I'm leaving money on the table." And so, the second one is make sure you're invested in the right type of investments. Make sure you're invested in the right type of investments based on your risk tolerance and when you need access to the money, because, for me, I found out that I was not actually invested properly, based on what I wanted to do. And this also is in regards to fees. So I'm going to give one example of myself, when it comes to fees and what I found out about one of my investment accounts, and then one example when it comes to my husband, that we discovered.

Okay, so, when it came to me, when I was working at my job, I had pretty great options as to where I could invest my money, where I was invested, right? And so I had a lot of great options, and they weren't really that high in fees either, but one thing when I had logged into my account, I realized that I was invested in four types of holdings. One was a bond holding, one was a large cap fund holding, one was a mid cap fund holding and one was a small cap fund holding. And again, you don't need to have the same holdings. I'm just saying this because I'm going to compare something for you. And hopefully that, it, like, translates as I'm talking. So when I looked at the options in my account, to where it could be invested, I realized that I was invested in this small cap fund holding, but the fee for that small cap holding, meaning what I paid to be invested in the that account, or that investment, was .337. And there-- I was investing in other things too, as I mentioned, but when I looked at it, I was like, "Wow, that's the highest fee I have out of any of my investments that I'm investing in." And so I looked at the next mid cap fund holding that I was invested in and that fee was only .060. So a big difference in fees. And then I was like, "Well, let me see, maybe it's a reason why I'm paying that much more in fees, maybe I'm earning a lot more with this holding, with this investment." And when I compared what I was getting a return on in that small cap fund holding, which had the higher fee, versus the mid cap fund holding, which had the much lower fee, there were no difference, actually, I had higher returns in the mid cap fund holding. And so I made a decision, when I realized that, when I compared the fees to the return, and realized that I was not being compensated for the risk that I was taking, for the fee, actually, that I-- was that I was being charged, I switched, mostly all my holdings to the mid cap. Now again, these are my, by the way, examples, like a real life example that I did. And I want to show you how that makes a difference. In this case, it saved me 1,000s of dollars in fees. Now, I did look at historical returns, like I looked at what has historically been the returns on these holdings and investments. And literally, the mid cap fund beat out the small cap fund, what I was looking at, the history shown that I got more return in the mid cap fund, or the fund itself was returning more than the small cap fund. Even if you don't remember fund, the fund name that I'm talking about. This is what I want you to take away from this example. I had to make sure that I was being compensated for what they were charging me in fees. Now, I wouldn't mind if that fee was higher, if I was getting a better return compared to the other things I could be invested in, but I wasn't. And so I switched that. Making that switch, I'm going to tell you, so when I did the math back in the day, because I took notes, it's funny. I've had all these notes and things I've discovered and just, like, coming to be able to share them with you. So when I did the math on this, I realized that difference in fees was $45. The annual difference in those fees were $45. And I know that does not seem like a lot, because in my head, I'm "like $45. Okay, who cares." But, let's just say I kept that money in the account for the next 25 years, meaning I kept it the same, I did not change over anything. That means, like, literally, like, that account, it's $4,837 more dollars that I'm paying in fees that I didn't have to because there's no return. There's no additional return, right? Then this is assuming that the returns stay the same and are still on par and the fees stay the same. So, by looking at my investment options, by comparing them in my own account, I was able to see I was not being compensated in terms of paying more fees for this account. And so when I switched it, I saved potentially, right, $4,837 in fees just by doing that. And if you think about it too, that, that saving, that net saving means that money now gets invested. So if you invest, you take that money invest at a percent rate going forward, if that's the return that you want to use, that is 1000s of dollars in future earnings that you can use, right? So, one I want you to think about and look at where you're invested right now and your accounts. Think about and compare, you don't even have to take action right now. I want you to be just aware of at your 401k or 403b, or wherever you are invested right now, if they are giving you options. What are those options? And are those options-- What are the fees? Are you getting, for the ones that have higher fees, or are actively managed, which would have higher fees, are you getting better returns for that? Because if not, and there are other options that have lower fees, and just the same amount of return, then it may make sense to think about looking into switching. Now, I'm going to give you another example. This is my husband now. Now this was a big, kind of, like, to tell you about, like, not sometimes understanding things. This was a couple years ago we found out about this, was figuring out that he was not invested at all optimally. So a couple years ago, we went into his retirement account. He's a teacher, so he has a 403b account and went in there. And to my surprise, 100% of his retirement money was invested in, you know, I can't believe this. It was invested in bonds. Now, it's nothing wrong with bonds, but 100% of his money, not 2%, not 15%, 100% of my husband's money was invested in bonds, which at the time, I believe were earning like 1%. Like, literally zero. And here I am, and the option, so he had options that had equity. That earned-- was earning, on average, 7 to 8%. So, when I realized this, when we realized this, it was kind of just like, "Oh my gosh, how long was it like that? Where it was just sitting, earning less than inflation and not being really invested the way we wanted it to be invested." So we did actually switch. And we, we switched it to, to a diversified equity portfolio. That was going to return a lot more money than or percentage than the bond portfolio was. And I forgot how much, at that time, how much money was actually in that account when we made that switch. But I did just like run like a basic future value calculation. So let's just pretend that his retirement account had $25,000 in it. If it was just sitting in bonds, earning 1%, for the next 25 years, and this is assuming we don't even contribute anything to it, it would then grow to about $32,000 at 1%, right? Over time, over 25 years. If we just now switch and take that $25,000 and instead put it into the equity, at 8%. Just literally we're not putting any more money in it, we're just switching accounts, it would go to $171,000 over 25 years. Again, this is an annual compounding rate. These are assumptions, but this is not an assumption when it comes to the 1%. Literally the bond was earning 1%. I'm talking about future value assumptions that, you know, you're going to get this average return, going forward. That is over $150,000 difference. In literally just understanding where your money is being parked, and then switching it. And so that's one of the things that when I was, like, on my journey to the-- especially the beginning part, of financial independence, I would start to listen and read and realize, like, and understand the accounts and what we were doing. And literally was able to switch this and and see potential future hundreds of 1,000s of dollars of difference of earnings, because of this moves. So this may be a case for you too. You may not really be currently invested in something that you don't one, understand, or two, it's just not a great fit. And there's nothing wrong with investing in bonds or something more conservative. In our case, it didn't make sense, because this was not money we needed at all, anytime soon. We are aggressive investors for the most part, like aggressive, aggressive as you can be with, like, you know where your priority or where your preferences index funds, meaning we don't need the money now. And so we're content to let it sit and ride out any market dips, which is why we don't mind investing majority of our money in equity in index funds. So for us, being invested at all in bonds, just didn't make sense, when we knew we didn't want to touch that money anytime soon. So that was one of the things that you should think about. For us, it didn't work in terms of sitting mostly in bonds for you, it may be something if you're going to retire next year, you may have to consider that you're not going to be as aggressive with switching to an entire equity portfolio, right? Okay, so that was number two.

Let's move to number three. This is a real fun one, because actually, I look back and actually did a video on this in 2019. I'm going to link it, I did a video on my Instagram, about how much, like, future money I was able to earn. It was $250,000. I'm gonna explain how that happened. And maybe see if you can find that kind of money in your investments also. I'm also going to link that video, because I explained everything in that video also, but the number three topic or thing that I want to talk about, maybe you're making a mistake or leaving money on the table where you could potentially see future earnings is, leaving money at an old job where it can be invested better, right? So invested better, meaning, that's going to be the decision you make again, after you do research, but in my example, I was working at my job. My job offered me a 401k. So they match me with at the 401k at a certain level. Then I also invested money on top of that. Then, they also gave me a retirement account. And that retirement account was based on, kind of, like how long I worked. If I was vested, and they, on their own, contributed to that account. I didn't contribute to that account at all. And so, when I left my job, then it was, "Okay Jamila, are you going to move your money?" And I actually kept, and still have it there, my my, my 401k from my old job is still at my old job. I did not roll that over. And honestly it's doing really well. And the fees are pretty low. So I'm not concerned about that. The second account, the retirement account that they had opened for me, when I looked at it, I realized that literally it was earning, I believe, at the time, 3.36%, because it was a very safe, they put it in a very safe investment, earning a solid 3.36%. And I remember thinking to myself, I can earn more, like, if I roll it over and put it somewhere else, right? Like in my own, like, if I am able to choose the investments. So I spent some time, I called my my old job. And the plan owner, who helped me figure, like, exactly what this account was, they confirmed it was a pre tax retirement account. They confirmed that it's a guaranteed rate of 3.36%. And if you leave the company, I was vested at that point, meaning, I worked long enough to be able to buy that money was mine. But the other option that I had to ask about was, "Well, can I take that money? I know I can take my 401k money and move it over and roll it over into a my own retirement account somewhere else, but can I actually take that retirement account that you have?" And they said "Yes, you actually can move that money." Of course, they're going to tell you, or they said, it's at your own risk. Of course, of course. But I'm thinking to myself, "Why would I let..." and at the time, I'll tell you how much it was it was 90 about $92,000. "Sit earning 3.36% Over the next 20 years, like when I don't need that money anytime soon. So I can invest that at a way better return on my own and earn more money?" So it took a couple of calls, a couple of hours. I had to get, you know, do the rollover. But I opened up my own IRA, individual retirement account. So this is my own traditional IRA account, so that I can roll the money from my old job into that account. Now why did I do that? I did that because I knew that I could invest it on my own. Even if I just invested in index funds, which is what I did, where I can earn, let's say an average of 8%, which is what I did. And so when I rolled that money over because there was no taxes involved, because I'm rolling it over from a pre tax retirement account into another pre tax retirement account, but this time, I get to choose where I invest it. And I did the math on this. And so for example, leaving that $92,000 there at my old job, earning 3.36%, for 20 years would grow to be about $179,000. Not bad. Obviously, that's great. When I did the math on if I take that same $92,000, and I just put it in index fund, leave it there, I don't even contribute anything else to it, that account could potentially grow to $432,000 in 20 years. Okay, that is a $252,000 difference. Is there a risk associated with this? Of course, right? That does not mean that it's always gonna earn 8%. This is an average 8%, over time, right? But it's really plain to see that simply by and I say simply not to say that there's a simple move. But by simply thinking through, doing the math and seeing the difference, this is a risk I'm willing to take. And because I switched it over, now we have potentially, we're going to potentially earn over $252,000. And of course, as time goes further, when we need the money, when we're going to access that money, we can go into more conservative investments. We can switch that, but for now, it was a no brainer. And so with that, I want you to think about where your money is currently. Is it at an old job? Is that old job 401k doing what it needs to do? Is it giving what it's supposed to give? Okay, like I said, I kept my my old 401k is at my job still, because that's great fees and great returns. And it actually is more diversified than when I do it on my own. But I moved my retirement account that separate account, because the return just didn't make sense. And I didn't-- I actually didn't, I don't remember what fees they had on that account, but I know that when I invested on my own, in index funds, it's super low fees, and I'm getting a better return. So this may be a case for you where you have left your money at an old job. Maybe you don't even know where your money is, okay, like, maybe you need to actually do some research and figure out "wow, I worked at this company 10 years ago, and I think I had a 401k, but I don't remember." You may have to dig back and do that. But this is what I want to say this, this process for this rolling over my money from my retirement account to my own traditional IRA outside of the account. Yes, did it take time and going on the phone with people, which I didn't want to do? Did it take waiting a couple weeks, because they literally had to send me a check and then I had to then take that check, then send it to my investment account and then wait for that to for them to get it and then make the investment. so this can be a little tedious But I don't want to discourage you by saying that. But I want to say, if this all in all, for me maybe took like four hours of my time altogether, but four hours of my time has potentially earned me $252,000 In the future, that's worth it. And so for you, it's probably worth it to go back and check and see where you are with your money. see if there's an old account that you have forgotten about, or that's not doing what it's supposed to do, and that you can change. Now, again, I just gave you a lot of information. You may need to listen to this, again, take some notes, but you don't need to do this all at once. I hopefully have at least planted some seeds that allow you to get excited about what potentially, like, in your accounts, what kind of money you can find, right? That's just there that can be optimized better. That you can potentially do more research on. Remember, I'm a big proponent of research. I never want you to just do something because Jamila did it, because I said to do it, or because you heard someone else on the podcast say to do it. I want you to be inspired, be educated, and then say to yourself, "Does this fit me? Maybe, let's try it out. Let's do the research to see." But I also don't want you to overcomplicate things if you don't need to, right? And so what I want you to do is spend maybe, after you press stop, after you send this to your family and friends, because you're like, "Oh, did you hear this last Journey To Launch Podcast? We can potentially make hundreds of 1,000s of dollars with the money we already have." I want you to just set some time aside and think about what your first step is going to be. I would advise, really, your first step could literally be, "I'm going to just understand everywhere that I'm invested in." So, what are all my investment accounts? If you have a 401k, If you have a Roth IRA, if you're married, do it together and list it out. Make sure you just have the logins for that, like, that's step one, do you have the logins for all your account? Can you access them? Step two, can you at least go in and read and see what your annual return has been and what the fees are? Step three, can you compare them? Does it make sense? Step four, is maybe calling your investment company or the plan. So, if you're at your job, and it's a 401k provider, calling them and asking questions. That's what they're there for. So you can understand the investments a bit better. And then I'm telling you, it's one of those things, is as you take the next step, more steps will appear in front of you magically. You'll know when you take the first step, what the next steps will be as you continue on. And you're inquisitive, and you're thoughtful about the process.

So to wrap up, I hope that these tips and I'm gonna just say them, again, these three tips that may be costing you. Mistakes that we all have made, or we all are still making. If you can figure these out, you can potentially earn more money with money you already have. That is just sitting your account, in your investment accounts not being optimized. the three things are: One, You need to pick the actual investments in your investment account. Opening up your investment account is just the first step. you need to go beyond that and now pick the investments so that your money can start earning a compounding interest, right? they can start earning returns. Number two: Make sure you're invested in the right investments based on your risk tolerance, based on how long you have to invest in the market. Is what you're invested in right for you? You may be paying higher fees and you need to and there's literally a better pick, right, like, by with a click of a button. You may not be invested in the right thing based on your risk profile, as in my husband who was invested 100% in bonds, which didn't make sense for us, right? So you figure out are you invested in the right investments and are you being rewarded for the risk or for the fees that you're being charged? Number three: Do you have money, retirement money, investment money, somewhere that, one you don't know about or two, is not invested optimally? In my case, one of my accounts at my old job just it wasn't invested optimally and me taking some time to move that money around now is going to net me, potentially, hundreds of 1,000s of dollars, right?

So, my goal here, my wish for you, is that you are going to find some sort of savings or more money to invest, because of this podcast episode. And if you do, I'd love to hear more about it. Or if you have discovered this, maybe you have already figured this out. And you want to share, let me know. I love seeing your feedback. Share with me on Instagram, Twitter, Facebook. I mostly hang out on Instagram @journeytolaunch. Tag me. Let me know what you think. This episode is actually scheduled to go out right before the New Year, so let's go into the new year making some money, okay? With the money we already have, okay? Again, let me know what you think of this episode. Tag me @journeytolaunch. Share this with a family or friend. Let me tell you something, don't be greedy, give to the needy. Share this with someone who needs to also hear this to get educated. Just copy the link. There should be a link wherever you're listening to this and share it with someone. All right, sounds like a plan. Alright, Journeyers!

Okay, and don't forget, I am opening up doors to my signature course, The FI Course. And if you want to get on the waitlist before everyone else, so you get to be notified when the doors open, you get special bonuses, and you want to start out your new year on point mapping out your path to freedom, to living the life of your dreams, you need to get on this waitlist. You need to join me. So go to journeytolaunch.com/ficourse.

Don't forget, you can get the episode show notes for this episode by going to journeytolaunch.com, or click the description of wherever you're listening to this and you can still grab your Jumpstart Guide for free to help you on your journey to financial freedom by going to journeytolaunch.com/jumpstart. If you want to support me and the podcast and love the free content and information that you get here, here are four ways that you can support me in the show: One, make sure you're subscribed to the podcast wherever you listen, whether that's Apple Podcasts, that purple app on your phone, your Android device, YouTube, Spotify, wherever it is that you happen to listen, just subscribe so you are not missing an episode. And if you're happening to listen to this in Apple Podcasts, rate, review and subscribe there. I appreciate and read every single review. Number two, follow me on my social media accounts. I'm @journeytolaunch on Facebook, Instagram, and Twitter. And I love, love, love, interacting with Journeyers there. Three, support and check out the sponsors of this show. If you hear something that interests you. Sponsors are the main ways we keep the podcast lights on here. So, show them some love for supporting your girl. Four, and last but not least, share this episode this podcast with a friend or family member or co worker, so that we can spread the message of Journey to Launch. Alright, that's it until next week. Keep on journeying Journeyers.

(This post may include some affiliate links)

In this solo episode, I go over the top 3 investing mistakes that I’ve experienced and that are potentially costing you hundreds or hundreds of thousands of dollars. 

My goal with this podcast episode is to hopefully help you discover money you’re leaving on the table and plant the seeds to optimize your investments, so that you can make them work even more for you. Ultimately, I want you to make money with the money you already have! 

Take out your pen,  notepad and listen up: You’ll want to make sure you make notes and catch everything in this episode!

In this episode we discuss:

  • Real numbers to show how simple changes can make your investment accounts grow
  • Why opening your investment accounts is just the first step (beware sitting money!)
  • Why being aware of your past employer investment accounts matter
  • The huge implications of knowing how your money is being invested + more
I'm Listening to Episode 249 of the Journey to Launch Podcast, Top 3 Investing Mistakes That Are Costing You Thousands Of Dollars Share on X

Other related blog posts/links mentioned in this episode:

  • Check out my video explaining how I made $252,000 more in an hour and a half here.
  • Join the waitlist for my signature course, Map Your Way To Financial Independence, here.
  • Check out my new personal website here.
  • Join The Weekly Newsletter List
  • Leave me a voicemail– Leave me a question on the Journey To Launch voicemail and have it answered on the podcast!
  • YNAB –  Start managing your money and budgeting so that you can reach your financial dreams. Sign up for a free 34 days trial of YNAB, my go-to budgeting app by using my referral link.

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