6 money mistakes the experts make

When it comes to money, nobody's perfect. Everyone makes mistakes with money. It's easy. What's not so simple is repairing the damage.

Here six experts share their worst missteps, along with how they got back on track:

Eric Tyson, author of "Personal Finance for Dummies"

1. Don't go with strangers.
As a college student in the 1980s, Eric Tyson decided to invest a portion of his savings in precious metals. He turned to a company he had seen advertised in some prestigious publications. "My mistake was in assuming they were a reputable firm," says Tyson, author of "Personal Finance for Dummies."

"I didn't do much, if any, due diligence on the firm," Tyson recalls. Instead, he invested $2,000, "which for a college student is a lot of money." Long story short, he says, "The company was engaged in big-time fraud. I never got the bullion. I never got my money back. The firm basically went under."

About the same time Tyson began to suspect something was wrong, a flurry of press stories confirmed his worst fears. He kept working the phones, trying to get back his money to no avail.

"The sad thing was that there were some investors, older people, who put a good chunk of their life savings" into the investments, Tyson says. For them, "it was a catastrophic event."

What Tyson recouped: "A tax write-off and a great learning experience," he says. "Investing in precious metals is not inherently a bad thing to do." The main thing, Tyson says, is to remember "the importance of doing due diligence on companies you do business with."

Chris Farrell, economics editor of the nationally syndicated public radio program "Sound Money"

2. Start early.
If you procrastinate about your retirement savings plans, you're not alone, says Chris Farrell, economics editor of the nationally syndicated public radio program "Sound Money."

"I really didn't start saving for retirement systematically until later in my life," says Farrell, who also wrote "Right on the Money! Taking Control of Your Personal Finances." While many of the companies Farrell worked for offered retirement plans, the matching money was only vested after 10 years or so.

For Farrell, like many young professionals who were changing jobs as they moved up the career ladder, that effectively eliminated the matching benefit and made the programs much less attractive.

"I didn't get anything from it, and I knew I wasn't going to get anything from it," he recalls.

Consequently, he didn't make the investment he should have. "The dumb thing is that I could have opened up an IRA," he says.

Unfortunately, putting off saving for retirement is common "for people of my generation," he says. These are the folks who, until 20 years ago, were more concerned with getting the highest CD yields than investing in 401(k)s.

It's also never too late to save smart, Farrell says. He now has several retirement accounts, including a SEP and a 403(b). "You can't beat up on yourself for what you didn't do," Farrell says. "You just have to take maximum advantage of plans going forward."

Michelle Singletary, syndicated personal finance columnist

3. Do your homework.
Nationally syndicated personal finance columnist Michelle Singletary was fresh out of college when she was first offered a 401(k) retirement plan.

At the time, she recalls, "I knew nothing about stocks and bonds."

Instead of doing her own research or talking with experts the plan administrators provided, she sought advice from a colleague. In his 40s and conservative by nature, her co-worker told her to skip the stocks and put all her money into bonds.

"I could just kick myself," she says.

"I wish I had just taken the time to investigate and learn about the market," recalls Singletary, author of "Spend Well, Live Rich: How to Get What You Want with the Money You Have." Her friend's advice was right on the mark for him. But different life stages require different investing strategies.

The solution: Over the years as Singletary learned about stocks, bonds and savings, she changed her approach.

Her advice: "Become knowledgeable," she says. And, "Get advice from people who know what they are doing." Many plans have phone numbers so that you can speak with professionals, she says. "You don't have to pay for it. Just ask human resources, 'Who can I talk to?'"

Turning to friends, co-workers and relatives for financial advice is a common mistake. "A lot of people do that," she says.