Wow… November already! As another year starts to come to an end, it’s a good time to start to look at what’s gone well and what hasn’t…

Most people want to start investing at some point. Yet most people aren’t sure how to get started, what to do and how to avoid mistakes.

So, I thought I’d run you through the biggest investment mistakes people make in the hope you can avoid them…

TIME

Often one of the biggest mistakes is not starting early enough. Most people underestimate how much they need to invest to achieve their goals in life and it’s made all the more difficult by not getting started early. If you’re thinking you may have left you’re run too late, don’t think about the past, just get cracking now!

FEES

Once people do make the decision to invest, they often pay too much in fees, unnecessarily. It’s tricky because they don’t teach these basics at school and so the investment world has been able to create the perception that fancier, higher-fee products will yield better results. It’s almost always the opposite. This is true of both your superannuation (which we all have to have!) and investing outside of super.

EMOTIONS

Another common mistake is not sticking to a plan. When people let their emotions guide them, greed and fear often lead to people buying and selling at the wrong times and deviating from what they originally planned to do. One of the biggest parts of my job is to take the emotion out of investing for my clients.

DIVERSIFICATION

In terms of what investments to buy, it’s important to keep an open mind and be willing to learn. We all know the saying “don’t put all your eggs in one basket”, yet many people limit their investments to things they think they understand or things that make them feel comfortable. In some ways, when it comes to investing, it’s important to get out of your comfort zone and embrace ideas you weren’t previously familiar with.

THE BIG ONE

There is one mistake that is the biggest of all… not investing!

Don’t let analysis paralysis stop you from taking the first step. You just have to get started. And the easiest way to do this is to get your super right, as we are all investors through our super EVERY TIME we get paid.

Start small, invest regularly, keep costs as low as possible, diversify and stick to the plan. Do these things and you will create wealth… it’s not magic, it’s not rocket science… it’s creating a plan and putting it into action.

And just like you get help with plenty of things in life that aren’t rocket science (think going to the doctor, getting the car serviced, selling a house, etc), perhaps it’s time get help with financial planning.

If you would like help with a plan for investing and value financial advice being independent, let’s have a chat. After all, the right financial advice is not an expense, it’s an investment!

Cheers,

Daniel

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If you’d like to find out more about how INDEPENDENT financial advice could help you manage cash flow, pay off the mortgage faster, get the most out of super and invest wisely, then get in touch on 0411 484 464 or head to wealthtrain.com.au.

This advice may not be suitable to you because it contains general advice which does not take into consideration any of your personal circumstances. All strategies and information provided are general advice only.

Daniel McGregor and Wealth Train are authorised representatives of Independent Financial Advice & Education AFSL 520963