When I talk with clients about their financial profile, I encourage them to look beyond the size of their paycheck. What I know is that wealth accumulation happens over time, as a result of diverse investments and well-managed funds.
So, how does a person with modest income get started? The variety of investment options can be challenging, and many beginning investors struggle to make smart decisions.
There are a number of ways that a little knowledge can be a risky thing when dealing with investments.
For example, here are five common mistakes made by inexperienced investors.
- Investing based on a cold call from an unknown broker. This is always a mistake.
- Buying last year's hot investment. A previously rising star often has risen near its peak. Your late investment may have nowhere to go but down.
- Neglecting to periodically review your investments. If you like to buy and hold your investments, you may have a tendency to leave your investments alone for too long. Your allocations should regularly be reviewed.
- Relying on hot tips. Remember, if it sounds too good to be true, it probably isn't true.
- Trying to save money by DIY (do-it-yourself) investing. The expertise of an independent financial advisor is valuable when starting to build your investment strategy.
The truth of the matter is that there is no single solution that works equally well for everyone. If you want a secure financial future, it is imperative that you take the time to develop a financial roadmap. You want an investment strategy that is customized to deliver the kind of performance and attention to detail that you deserve. The quality of your future depends on it.
Have questions? Get in touch today! We can meet at my office or another location convenient to you. I can help you develop an investment plan that is compatible with your budget, your current situation, and your lifestyle goals.
Material discussed is meant for general illustration and/or informational purposes only, and it is not to be construed as investment, tax, or legal advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon when coordinated with individual professional advice.