Often, investors don’t actually know the performance of their investments. Review your returns to track if you are meeting your investment goals, factoring in fees and inflation.

Not Knowing Your Performance

Diversifying prevents a single stock from drastically impacting the value of your portfolio.

Not Diversifying

Having reasonable return expectations helps investors keep a long-term view without reacting emotionally.

Expecting Too Much

Often, investors focus on short-term returns or the latest investment craze instead of their long-term investment goals.

No Investment Goals

It’s easy to focus on the short term, but this can make investors second-guess their original strategy and make careless decisions.

Focusing on the Short Term

Fees can meaningfully impact your overall investment performance, especially over the long run.

Paying Too Much in Fees

Too much risk can take you out of your comfort zone, but too little risk may result in lower returns that do not reach your financial goals. Recognize the right balance for your personal situation.

Misunderstanding Risk

Market timing is extremely hard. Staying in the market can generate much higher returns versus trying to time the market perfectly.

Trying to Time the Market

Taking the time to find the right advisor is worth it. Vet your advisor carefully to ensure your goals are aligned.

Working With the Wrong Advisor

Review your portfolio quarterly or annually to make sure you’re staying on track or if your portfolio is in need of rebalancing.

Not Reviewing Investments Regularly

While no one can predict the market, investors can control small contributions over time, which can have powerful outcomes.

Not Controlling What You Can

Negative news in the short-term can trigger fear, but remember to focus on the long run.

Reacting to the Media

Consider two people investing $200 monthly, assuming a 7% annual rate of return until the age of 65. If one person started at age 25, their end portfolio would be $520K, if the other started at 35 it would total about $245K.

Neglecting to Start

Check the credentials of your advisor through sites like BrokerCheck, which shows their employment history and complaints.

Not Doing Due Diligence

High-yielding investments often carry the highest risk. Carefully assess your risk profile before investing in these types of assets.

Chasing Yield

Investor behavior during market swings often hinders overall performance.

Buying High and Selling Low

One study shows that the most active traders underperformed the U.S. stock market by 6.5% on average annually.

Trading Too Much

Historically, inflation has averaged 4% annually. Value of $100 at 4% Annual InflationAfter 1 Year: $96After 20 Years: $44

Forgetting About Inflation

While tax-loss harvesting can boost returns, making a decision solely based on its tax consequences may not always be merited.

Focusing Too Much on Taxes

Although it can be challenging, remember to stay rational during market fluctuations.

Focusing on the Short Term

Similar ideas to Focusing on the Short Term

Focusing On The Long-Term.

10/10/10 Rule

Pain Is Short-Term