5 Investing Mistakes to Avoid

Tweet

If everyone who invested their money had a crystal ball to see into the future, making money would be easy.  We could all buy low and sell high.  We could always choose the markets that would give us the best return on our investment.  Sadly, there is no way to see into the future to assure you’ve made wise investments.  But there are some mistakes that you can avoid that may make the future a little brighter than it may otherwise be.  Here are 5 important investing blunders to avoid.

1. Choosing the wrong investments for the goals you have in mind. If you are investing for a goal that is in the near future, investing in something that is intended to produce long term results is not the right investment to choose.  Be sure to have a clear picture of what you need and then match it with the right investment strategy.  For example, investing to fund the college tuition for your child who will be attending university in five years is a lot different than investing for your retirement that may be twenty years away.

2. Paying too much in fees.  Much of what you do with regard to investment transactions will include various charges and fees.  It is important to educate yourself on which of these is necessary and appropriate and which ones might be excessive and/or unnecessary.  When you work with a company or individual you trust and respect, chances are the only fees you pay will be the most essential ones.  Do your research so you can make informed decisions.  There are numerous places online where you can learn what fees you should expect to legitimately pay for services rendered.

3. Making random choices.  Choosing where to invest is something like buying your groceries.  If you are concerned about healthy eating, you will no doubt read a lot of labels before you add an item to your shopping cart.  Investing your money is much the same.  Many people tend to choose an investment from a list of options presented to them without even bothering to “read the label” on that company. 

4. Failing to outline a strategy.  Successful investing is rarely something that happens, and continues to happen on its own.  As your life and financial needs change, so should your investments.  It is essential to design an investment strategy that will ultimately provide you with the results you need. Remember too, that it essential to monitor your investments and change the plan as needed to keep it focused. If this seems difficult or confusing for you to do on your own, look to an experienced professional to provide help and guidance.

5. Waiting too long to get started. When you’re young, retirement seems like an eternity away.  Unfortunately, it arrives on our doorstep much faster than we anticipate, so it is wise to start investing as early as possible. But even if you’re late to the investment scene, there are always ways to invest for at least some return and income.  It’s never too late to take action!