The following list presents 12 fatal errors in how to invest which destroy your accumulated capital:
1. When you invest everything in a single asset it creates unacceptable risk since major losses become inevitable.
2. Situational emotional influences that guide investment choices often lead to inferior selection of investment opportunities.
3. Investment without a detailed strategic plan brings confusion which results in losses.
4. You should understand all fees and charges because hidden charges will deplete your investment returns and diminish your financial wealth.
5. Financial success from past-performing assets cannot be guaranteed through exclusive focus on their previous success.
6. A failure to rebalance your portfolio will result in excessive exposure to particular assets.
7. A lack of knowledge about complex assets will result in major investment losses when you decide to invest in them.
8. The practice of using excessive financial debt to fund investment activities creates conditions which might result in complete financial destruction.
9. Tax implications should be evaluated during investing because failure to do so decreases returns while raising tax responsibilities.
10. Your portfolio decreases in value because you do not conduct regular portfolio checks and adjustments.
11. The act of forecasting market movements creates poor investment decisions for investors.
12. The decision against consulting with financial experts will create expensive errors.
These critical investment blunders should be avoided because they both safeguard and increase your wealth accumulation throughout periods of time.
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