Avoid Investment Pitfalls
When it comes to preparing our financial future, we all have the best intentions. We resolve to find the surest and safest investment vehicles. We read magazines and books. We attend seminars and courses. All in an effort to find the path to financial wizardry.
But there isn't any yellow brick road, and the route to financial security is strewn with pitfalls. Few financial success stories are without episodes of failure. The trick is to keep those failures to a minimum by recognizing the common traps to which investors fall prey:
Not setting goals
It can be difficult to find the right advice or the right products when you're not clear on the direction you want to head. Setting a goal is fundamental. Consider your circumstances, as well as your future financial goals. Define your goals as clearly as possible, and set specific objectives as certain reference points along the way.
If you don't have definite goals, you're not likely to get excited enough about financial planning to get yourself started. In short, don't keep putting off your financial future.
Missing the big picture
If your plan is to be workable, you need to look at all aspects of your financial situation and how they interrelate. And be sure not to neglect key considerations such as the tax aspects of investment decisions, or concentrate on short-term objectives at the expense of long-term dreams.
Try not to get attached to any investment decisions you make. Learn to cut your losses and take your profits when opportunities permit. One of the best ways to take the emotional involvement out of the process is to develop a disciplined approach to your portfolio management. Disciplined investors rebalance their portfolios periodically, with a very simple goal in mind: buy low and sell high.
Don't follow the crowd
Most investors enter the market at the wrong time. Investment fads change from decade to decade, or even year to year, but human nature remains constant. Try to keep your focus on your own goals and needs.
Managing your own financial affairs takes considerable time and effort. But with the help of a professional Financial Consultant, you can make more informed decisions to put you on the road to financial success.
Use our Find An AdvisorOpens a new window in your browser. tool to locate a CIBC Wood Gundy Investment Advisor near you and take the first step to achieving the financial future you want.