Investing Mistakes, Part 2 (unfortunately)

Who are we kidding? This could probably be part 2 of 7 with the sheer number of missteps investors are making. Maybe someday this list will get shortened!

To recap, here are the investing mistakes we discussed last month in Part 1:

1.????? Worrying that every stock market drop is the start of a crash

2.????? Avoiding the stock market when things are good

3.????? Focusing on a small group of stocks

4.????? Holding too much cash

While we wish this was the end of the list because you listened to our sage advice, there are more to add:

5.????? The Taxman Cometh. Investors that own after-tax accounts might get stuck with a large tax bill if they’re not careful. Only selling the winning investments and not tax-loss harvesting are reason enough to give Uncle Sam more than what he deserves.

6.????? Paralysis by Analysis. Investors often get caught up in the what ifs: “Should I pick stock A over stock B?”, “What price should I pay?”, What if I buy stock B and it drops tomorrow?”, “What price should I sell at?”. If you’re asking these questions, you’re asking the wrong questions! Investing can be uncertain, and no 1 investment is going to be the solution. Having a long-term plan with a diversified portfolio is your best bet.

7.????? Block out the noise! Political turmoil, wars, and natural disasters are all just part of life. Worrying about what may never come is losing strategy. Rather than using headline news or conspiracy theories to dictate decisions, investors need to look at the economic data that drives the stock and bond markets (corporate earnings, GDP, unemployment data, etc.)

If you find yourself falling for one of these mistakes, contact us for a free consultation. Trust us, you’ll be doing you and your loved ones a favor.

Please check out our Position Wealth Video Blogs and the Position Wealth Website.