We all make mistakes, but many of them are minor. However, some mistakes can be costly — especially those connected to investing.
Here’s one common mistake: Too much buying and selling. Excessive trading can run up fees and taxes, but just as important, it can disrupt your long-term financial strategy. Another big mistake: Failing to create a good mix of investments. Owning too much of any one investment can be risky.
It’s also a mistake to try to “time” the market. “Buy low and sell high” sounds like good advice, but no one can really predict when prices reach low or high points — and this type of guesswork can result in poor investment decisions.
One more mistake occurs when investors don’t understand their investments and develop unrealistic expectations.
Finally, don’t make the mistake of simply comparing your investment results to those of a market index, such as the S&P 500. The only comparison that matters is how your portfolio measures up to the results you need to help achieve your goals.
Investing will always have its challenges — but you can help make it easier on yourself by staying away from as many mistakes as possible.
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Christina L Ebey, CRPC™ Jonesville 105 S W 140th Ct Suite 5 352-333-3032
Jon Broska, AAMS™ Gainesville 3302 W University Ave Ste A 352-378-2469
Matt Surrency Alachua 13100 Tech City Circle 300 386-462-0417