Common Mistakes Investors Make | Mission Wealth Management

what would you say the common mistakes most investors make well Mike there are a number of mistakes that investors make and we could probably take the rest of the show to to outline some of the perfect examples that we’ve witnessed at Mission wealth but I would say there’s probably three key areas that that we see investors over and over again making making mistakes with the first is they don’t start with a macro plan they just jump into fees and performance and a specific return decision what do you mean macrop plan well I mean they don’t really know what they’re trying to get at they just are chasing the hot winter from last year rather than saying what do I want out of my life what type of rate of return do I need to accomplish my goals what am I trying to accomplish in my life that the financial component of it will help me arrive at and so they need to start with a financial plan you need to have a holistic 30,000 foot view strategic Plan before you can ever make an investment decision that’s mistake number one so who designs the plan you the client well I will I’ll talk a little bit more about how we get into

plans but let me talk about the other two areas Mike that really we see as as common mistakes that investors make the second is the issue of diversification now most financial advisers and I think most investors now believe in diversification now more than ever after the recent markets but they don’t take it to the level that they should most people think of diversification as stocks bonds and cash but they don’t look at substyles they don’t talk about small cap large cap growth value on the stock side some being International maybe Emerging Market on the bond side maybe some being municipal bonds corporate bonds government bonds and what about out side asset classes such as real estate or hedge funds it’s important that you have someone that can really look at creating an Optimum portfolio for your given situation without any limited scope that sounds pretty complicated how do you make it easy for the investor to understand well it it is very complicated and I want to talk a little bit about uh how we deliver that for clients but I want to hit what the third mistake is that I see clients making over and over again and

that is they don’t have a system in place to give them a high probability of success investors make emotional decisions at the wrong time they sell when they shouldn’t sell they buy when they shouldn’t buy and they are not looking strategically at their overall estate looking at how taxes can impact looking at cash flow issues looking at estate planning issues and tying it all together so really not having a Financial macr Focus not diversifying to the degree that they should both from an asset allocation perspective and also I didn’t touch on this from an investment manager perspective