Burlington, VT (PRWEB)
May 31, 2017
We’re human, which means we all make mistakes from time to time. Unfortunately, some of those mistakes may have a longer-lasting impact than we’d like – like making errors with your investment management strategy. Luckily, with a little guidance and insight on what pitfalls to avoid you can stay on track. Dan Cunningham, founder of Vermont financial advisory firm One Day In July, addresses five of the most common mistakes investors make and how you can avoid them.
Not having a plan – First things first, and this may seem simple, but the only way to succeed with your investment strategy is to have a solid plan in place. Investing, like any other major life event, takes proper financial planning to ensure success on all fronts. You wouldn’t embark on a vacation on a whim, so why would you start investing on a whim? Look at the big picture. What are your goals? What assets do you have and how can you allocate them to this plan? What is your tolerance for risk? Figure out these answers and use that to guide your plan.
Working with the wrong advisor – An important component of the planning stage is also finding the right financial advisor to help you reach your goals. While many people may think they can go it alone, the reality is that in this situation an expert can provide valuable guidance and insight to help enhance your strategy. Unfortunately, not all financial advisors are paid only by you – they are paid by the funds they sell you as well. Be sure to ask advisors the sources of their compensation.
Starting late – There are many reasons for delaying investment planning, whether not having enough income, not knowing where to start, or simply not taking the time to think about the future. Unfortunately, the more you delay, the more you miss out on the benefits of compounding interest and each year you…