When it comes to investing, many people are not confident about what they are doing, and many others won’t even attempt it. In fact, the Securities and Exchange Commission (SEC) reports that 65 million households will fail to develop a comprehensive financial plan for their future. They also report that only 5 percent of those who do invest believe they know everything they need to know in order to make good investment decisions. These are only some of the mistakes that people make when it comes to investing their money.
“People make a lot of mistakes when it comes to investing, starting with the idea of not even getting involved in it,” explains Brad Glickman, CERTIFIED FINANCIAL PLANNER TM Professional and President of Bernard R. Wolfe & Associates, Inc., a company specializing in offering wealth management strategies. “Whether you feel confident about what you are doing, or you feel like a novice, you can only reap the rewards if you actually get started.”
Here are 5 mistakes that people make when it comes to investing:
1. Avoiding investing. This may happen because people feel they don’t understand investing, or because they think the economy is poor. Perhaps those feelings may be accurate, but not investing at all is going to be more harmful in the long run. Even in this current economy, it is important to invest.
2. Thinking investing is only for the rich. A big misconception which leads to making the mistake of avoiding investing is many people’s belief that being an investor is only for the rich. You do not need to be rich in order to invest money and be successful at it.
3. Lacking patience. A big mistake people make is to invest some money and then watch the market every single day to see what is happening. This can drive people to make poor decisions with their investments. To be a successful investor, you need to be patient and not micro-manage the investments.
4. Not diversifying. Especially in this economy, we think it is essential that people diversify their investments. This can be a good way to not only help protect the money you invest, but also to help you make money on top of that.
5. Not getting help. If you have questions or need assistance in setting up your investments, the best thing to do is get help, yet many shy away from doing so. Working with a professional financial planner can assist you with all of your investing needs, helping to ensure a more successful outcome.
“We all make some mistakes but, when it comes to investing, we want to avoid as many as possible,” added Glickman. “Our future depends on what we do with investing today. Make this year the one that you spring into action. Don’t put it off another day, week, or year.”
Bernard R. Wolfe & Associates, Inc., has provided financial management strategies and investment services since 1981. They assist a wide range of private and corporate clients with everything from estate planning and investment to divorce planning. The company also offers expert women’s financial planning services, led by Vice President, Samantha Fraelich, a Certified Financial Planner.
To learn more about Bernard R. Wolfe & Associates, Inc., visit the website at www.bernardwolfe.com.
Securities and Investment Advisory Services offered through NFP Securities, Inc. Member FINRA/SIPC.
# # #