People without proper financial advice can lose hundreds of thousands of dollars over their lifetime. Here's how to avoid costly financial mistakes in key areas:

Investing Bad investment advice costs Americans $17 billion annually and can reduce returns by 1% per year. This seemingly small difference can be massive - a $5,000 annual retirement contribution earning 7% could grow to nearly $1 million over 40 years, versus $775,000 at 6%.

To protect yourself:

• Choose fiduciary advisors who must legally put your interests first
• Consider low-cost robo-advisors that use automated investment algorithms

College Financing A bachelor's degree typically leads to $2.3 million in lifetime earnings, compared to $1.3 million with just a high school diploma. Unemployment rates are also consistently lower for college graduates (2% vs 3.7% for high school graduates).

Key college funding advice:

• Don't skip college, but avoid excessive debt
• Limit borrowing to federal student loans (max $31,000 for undergraduates)

Social Security Benefits Starting Social Security at 62 instead of waiting until 70 can cost up to $250,000 in lost benefits. Despite this, over one-third of recipients claim at 62, while less than 4% wait until 70.

To maximize benefits:

• Use Social Security claiming calculators to understand lifetime impacts
• Consult a fiduciary planner to coordinate benefits with retirement withdrawals

Credit Score Management Poor credit scores can cost you significantly:

• On a $300,000 mortgage: 720 credit score = 3.67% rate ($1,374 monthly)
• Same mortgage with 620 score = 5.03% rate ($1,616 monthly)
• Difference: $86,891 over the loan's lifetime

Additional impacts:

• Higher insurance premiums
• Difficulty renting apartments
• Missing out on best phone plans
• Higher car loan rates ($5,000 more on a $30,000 loan)

Actively monitor your credit score and understand how credit works to avoid these costly penalties.

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