Mistakes are not mistakes, that’s what my high school teacher used to say. But in investments, mistakes can be something very crucial that define the success of your investment. Here are the five crucial mistakes in investment you should most definetly avoid at all cost.
Doing It by Yourself
Last January, we witnessed stock markets and indexes drops. The bearish trend continued until almost a month. In that situation, you have to know what you should do. If you do not have any idea, you will get burned. In order to do that, some of you may not have time to always track the market. Thus, in that situation you need helps from a good financial advisor. Rich people usually hire financial planners, CPAs, and attorneys to protect their assets. Besides, that also helps them to reduce their risks.
Moreover, when you are stressed, the tendency for making a bad decision increase. In this situation, rich people always have a good advisor to mitigate their stress.
While some people are afraid to pay a high fee, the return of their investment will. On top of all, their return may be higher than the amount they have spent.
Don’t Diversify
Most of the investors usually put their stocks and bonds in their retirement savings or investment portfolio. Meanwhile, rich people always branch out and diversify.
Other than stocks and bonds, rich people usually also invest in things. For instance, real estate or limited partnerships and private markets. Thus, if stocks are having a bad moment, a good year in real estate can compensate for their losses or vice versa.
Another reason why rich people choose real estate or limited partnerships and private markets is they provide extra income. Renting the real estate brings immediate cash for you.