Common Investment Mistakes
Courtesy of Paul Ray Andrus, LUTCF, ChFC
There is a lesson to be learned from the recent $2 billion-plus loss by a sophisticated trading unit of JPMorgan Chase. Even “expert” traders make mistakes.
You shouldn’t expect every investment decision you make to be perfect. And when you are wrong, it’s best to recognize it and change course. It also helps to understand how you are different from a major trader. JPMorgan Chase may recover from speculation gone wrong. You might not be able to.
When individual investors falter, it is often one or more of the following common mistakes:
Failure to establish a long-term plan.
Whether or not you make your own investment decisions, this part is up to you.
Not starting early enough.
Some people put off starting a serious investment program until their 50s.
Buying and selling at the wrong times.
Most individual portfolios underperform the common indexes generally because of poor timing.
Insufficient diversifying, and not rebalancing regularly.
Maintain a diversified portfolio at all times, and rebalance once a year.
Being too conservative.
Avoiding any and all risk is generally not a sound strategy in to long term.
You may have been making any combination of these mistakes in your portfolio for years. Don’t let that discourage you. Simply identify mistakes and correct them.
Source:
Paul Andrus
877-777-2770
We hope you found this article about “Common Investment Mistakes” helpful. If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or our website at www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.
To receive our free newsletter, contact us here.
Subscribe our YouTube Channel for more updates.
Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
Alan L. Olsen, CPA, Wikipedia Bio
GROCO.com is a proud sponsor of The American Dreams Show.
The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.
Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.
The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.
They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..
American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:
Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…
MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness. It’s mission statement:
In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.
Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.
The Facebook Approach to Hiring
The Facebook Approach to Hiring When you’re looking for someone to do some kind of service for you, whether it’s building a house, repairing a car, filing your taxes, or even fixing a broken a pipe, in most cases you look for someone who has experience. So how important is the experience? In many situations,…
How Important Are Honesty and Integrity in Business?
How Important Are Honesty and Integrity in Business? Which attributes matter most in the business world? That is a difficult question to answer because there are so many important attributes that people, especially business leaders, need to have. However, one of the most important factors in any relationship, in business or life, is honesty, which…
How Do You Choose A Career?
How Do You Choose A Career? Most people have the mindset that they will someday choose a career and then follow that path and see where it takes them. However, in this day and age choosing a career is not very simple and many people end up on a road that they never expected to…
Top 8 Most Expensive Cars in 2016
Have your eye on a new set of wheels? If money is not really an issue then your choices are practically endless, as long as you can find the model you’re looking for available somewhere, as many of these cars are also extremely rare. However, if your search includes some of the worlds most exclusive…