Tips to avoid common investment mistakes by Blacktower Financial Management (Int.) Ltd.
Keith Littlewood explains how to avoid the most common investment mistakes
I have been in the business of helping people with their investments for 30 years now and time and time again I get people coming to see me with problems or losses with their investments and feeling very foolish about their investment decisions. Here are the 5 most common mistakes made by investors:
1 – All your eggs in 1 basket. This is the most serious mistake I come across. Making a poor decision about some of your money can be disastrous but losing all of it is devastating. It happens more often than you would think. Any adviser worth his salt would make sure that his clients’ money is diversified in some form. Just imagine losing ALL your pension fund because a single company or investment fund has gone bust. I have come across people who are in this situation and the impact on their lives is indescribable.
2 – Rushing a decision. Never feel pressured into making an investment decision, this will often lead to regret. If someone is making you feel pressured always step back. If there is an offer or inducement to make a commitment by a certain date and you are not 100% comfortable then get a second opinion. Missing out on that extra half a percent or free iPad if signing up now is not worth sleepless nights a rushed choice would give you. There will always be another offer just around the corner.
3 – Too good to be true. Investments offering returns guaranteed to pay 8% or 10% per annum or even 2% per month in the current climate WILL have some clause, catch or risk attached in the small print. Always get an experienced Financial Adviser to check out the terms and conditions before signing up.
4 – I saw it on Facebook. In years gone by this category would have been called ‘My mate in the pub said’. Hearsay is so dangerous. Social Media, friends, taxi drivers do not know anything about you. A Financial Adviser will complete a factfind, discuss your risk profile, understand your objectives and be qualified to understand the market. He should also provide you with a comprehensive report explaining his advice. Your friend on Facebook or mate in the pub might have struck lucky or even be just exaggerating or even not understand what he is talking about yet can provide overwhelming and compelling arguments about their investment success.
If you can avoid all the above when investing you are half way to making a sensible choice, it is usually best to get a second professional opinion of any investment decision.
In today’s financial climate it is essential you do everything you can to make sure your money is safe and secure and what you want to transpire in the future has the best chance of happening.
If you need advice or if have any questions regarding the above you can contact me, Keith Littlewood DipPFS on 657 684 094 or email keith.littlewood@blacktowerfm.com. You can now make an appointment to come and have a no-obligation discussion in our new office in San Pedro del Pinatar.
The above information was correct at the time of preparation and does not constitute investment advice and you should seek advice from a professional adviser before embarking on any financial planning activity.
Blacktower Financial Management (Int) Ltd is licensed in Gibraltar by the Financial Services Commission (FSC) and is registered with both the DGS and CNMV in Spain