This Halloween do not confuse a treat for a trick. Ensure you have done proper research and beware these 5 horror investing mistakes.
Don’t leave your finances for dead
You have to do something with your finances and not let them sit untouched.
If you are unsure, ask for help and don’t stay inactive. If you can’t make a big step, make several smaller ones. For example you can use pound-cost averaging and take responsibility for your decisions. Put your money to work!
Not paying attention to costs and fees can ‘suck the life’ out of your investments
You need to fully understand your options when investing, read the small print, compare products and be aware of hidden fees.
You might think you understand a product only until it’s too late and your portfolio has been bled dry…
Emotional investing is scary
Letting emotions cloud your judgement can lead to buying high and selling low, a trap that many investors have fallen into.
Instead, stick to long-term strategies and trust the experts to guide you through the market.
It is important to not make decisions that may live with you forever…
Don’t let recency bias haunt you
Bad periods in macroeconomics or geopolitics don’t always last forever. Don’t let bad stretches prevent you from saving towards your future. Instead, dismiss the impact of short-term volatility on your investments. Speak to a consultant to see if you need to review your situation.
Timing the market: trying to predict the highs and lows
Nobody has a crystal ball! Avoid chasing returns and focus on time-in-the-market, which is a more consistent way to look at the market.
Being spooked by falling markets and changing the course of your financial plan will have a hugely detrimental impact on your future savings.
*As with all investing, financial instruments involve inherent risks, including loss of capital, market fluctuations and liquidity risk. Past performance is no guarantee of future results. It is important to consider your risk tolerance and investment objectives before proceeding.
