Are You Smarter Than A 5th Grader?

We can all probably remember when this program aired on television. Of course, we all knew we were smarter, but there were times when some of the answers surprised us. We were certain our answers were correct, only to find out we were mistaken and we laughed at ourselves for forgetting facts we had once been taught.

What kinds of mistakes are we possibly making today with our investments that need to be revisited and
reevaluated? Here are a few that come to mind.

1. FAILING TO ADEQUATELY DIVERSIFY OUR PORTFOLIO: Putting all our eggs in one basket, or even in two for that matter. Spreading our investments over several investment categories is important to reduce risk.

2. INVESTING WITHOUT A PLAN: Winston Churchill once said “He who fails to plan, is planning to fail”. Without a plan we are gambling not investing.

3. MAKING EMOTIONAL DECISIONS: Don’t let “GREED” or “FEAR” rule. Stay calm and steady when making financial decisions. Stay the course!

4. FAILING TO REVIEW OUR PORTFOLIO REGULARLY: Our goals, desires, and needs change over time and even the best portfolios need revisiting or they can get off-target.

5. FOCUSING ON HISTORICAL RETURNS: One of our industry mantras is “Past performance is not indicative of future results”. Investigate several scenarios before deciding on a workable solution for you.

Investing mistakes can and do occur. Success is measured by how they can best be avoided or mitigated.  At The Volkers Group, we strive to assist our clients achieve their goals within their personal risk tolerance. Call your advisor and determine if changes need to be made to your portfolio.

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