No game plan
Without a compass and a road map, you will have no direction to keep you on the right road, likewise neglecting to commence and continue on your journey you will never reach your destination, in this case, financial freedom.
Not planning timeously
The goal of all investment outcomes is to increase wealth or assets which must be attainable, within your means and also realistic.
Not starting early or allowing too little time to reach your goal, does not give the investment time to mature and could cost you significant losses in return. In our next blog I will show you what happens to your investment when making incorrect choices.
Reacting to the media news
Money is an emotional reality for many investors, it is after all your hard earned money but emotion tends to get in the way when media news predict or report financial news. Often many investors hurt themselves by getting excited or panicking and acting out accordingly. Always consult with your Financial Planner before making any choices.
Taking too much, too little, or the wrong risk
Risk revolves around how much of a chance you are willing to take. It has to do with expectation and not taking a risk and expecting to earn high investments returns is an unrealistic expectation. Financial planners are well educated in this regard, how much is too little and how much is too much.
Following Investment Trends
Trending, chasing and focusing on the wrong kind of performance could hurt your returns.
When choosing a short term investment it is fine to chase performance but if you are intending to invest long term this could make you second guess your long term strategy. “Focus on value because most investors focus on outlooks and trends.” – Sir John Templeton.
Not practising due diligence
Following the advice of friends and family is not advised unless they have the qualifications and experience of Financial Planners. Likewise, you must ensure when you get advice from a Financial Planner that they are also qualified.
Not reviewing your Investments Portfolio regularly
At the very least an annual review with your Financial Planner will keep your financial engine running smoothly and you will remain well informed and positioned on any significant changes in your personal finances and economy.
Do not only focus on nominal returns, also take real returns into account. Compare performance after deducting fees and inflation. The cost will always increase even if the economy is not in a massive inflationary period.
Not managing what you can
You can’t predict what the economy and market will exactly do but you can control your financial wealth creation.
You can reach your financial goals through saving and investing capital over time that together with your returns on your investment can grow your wealth.
Edited by Natasja du Preez (Internet Marketing Solutions)
WARNING AND DISCLOSURE:
The content in this article is for general information purposes only and does not refer to specific advice to any particular person’s individual financial objectives or financial needs. Before making any financial decisions contact Ben Charlton or your Financial Planner.
Although every effort has been made to verify the accuracy of the information contained in this material, we disclaim all liability, for any error, inaccuracy in, or omission of the information contained in this material or any loss or damage suffered by any person directly or indirectly through relying on this information alone and not speaking to a qualified Financial Planner.