Avoid These Common Investment Mistakes
It seems almost everyone is invested these days. While that’s great for the market and economy, many investors are making similar mistakes that are easy to fix. Without proper knowledge and education from years of experience or investment background, it’s difficult to decide what’s helpful or harmful. Luckily, we’ve prepared a list of common investment mistakes to avoid so you won’t have to live and learn.
Ignore Advice. Advice from professionals and highly experienced investors can be useful. Whether you’re new to investing or have a few years under your belt, the advice may be helpful. You don’t always have to use it but considering it could give you a new perspective or idea. Talk to a financial professional for custom advice tailored to your portfolio and goals.
Overreact to market volatility or changes and you’ll likely regret it. Selling or making big changes may be tempting but avoid taking quick action—even if the market declines overnight. We know it’s scary watching your account drop quickly, but your initial reaction may do more harm. There have been plenty of instances of the market swinging down and back up quickly. If you’re feeling concerned, speak to your financial consultant about what actions, if any, you should take.
High Expectations can interfere with investment progress. Why? Because you may end up focusing on the “now” results instead of future outcomes and possibilities. Investing is all about working what you have, making the best out of uncertain situations, and using strategies to potentially gain.
Recommendations can be beneficial but remember to take them with a grain of salt. Like advice, it can be considered but shouldn’t be viewed as fact. If a friend boasts about something with a large return, that doesn’t automatically mean you’ll get the same next year. Past returns have little to do with future gains. Circumstances change daily in the stock market, so expecting a similar outcome a year later is unwise. Instead, note the recommendations you’re interested in and have a financial professional look into it for you.
Fail to Prepare, prepare to fail. As an investor, you should be ready for just about anything. Expect drops, money losses, and even failure. Have a plan for each situation. Don’t forget to create a strategy for when your portfolio is doing well. Meet with a financial consultant for informed decisions and planning. You can also research on your own or get a second opinion through other financial professionals.
Winging it. Successful investing takes planning and thought. Creating a strategy is important and goes hand in hand with preparing. A financial consultant should be your go-to for this. They’ll be able to create a proposal with certain scenarios and plans. A good financial consultant should present several recommendations with an explanation of each, so you understand the options you’re choosing.
Confused? You’re not alone. Many people make these mistakes, especially when first diving into the market. As an investor, you should constantly stay up to date with market news and new strategies—but remember, not every new plan is a good one. The best way to protect your portfolio and meet your goals is through a financial professional. At RGA, we specialize in a holistic approach to retirement planning and portfolio crafting by presenting calculated proposals and ensure you understand what’s being introduced. Interested in learning more? Call 1-800-467-8152 or email email@example.com to schedule a complimentary consultation.