It’s important to identify the myths of investing, which are roadblocks to your success as an investor.
Myth: “Stocks can be bought and sold in advance of their future price movement.”
The Truth: On average, 80 percent of all professional stock pickers fail to beat their benchmarks.
Myth: “The markets are predictable and can be timed.”
The Truth: Markets respond to people’s emotions, and people respond to the news and events.
Track Record Investing
Myth: “Mr. ‘Smith’ has predicted the market correctly every time, therefore he knows what will happen.”
The Truth: The probability of someone showing consistent success is higher with such a large population.
Myth: “Investors make decisions based on logic and sound strategy.”
The Truth: Most investors make decisions based on emotions.
I Don’t Need Help
Myth: “I can do this myself. I will succeed without any guidance.”
The Truth: It is very difficult for any of us to objectively advise ourselves without making emotional decisions.
When it comes to analyzing your portfolio, don’t let emotions interfere. Try answering these essential questions objectively:
- Are your investments aligned with your risk tolerance?
- Are your investments distributed into now-soon-later income buckets?
- Are your investments sufficiently diversified?.
- Is your wealth-building advisor accountable and available to you?
To get started analyzing your existing portfolio and getting financially organized, call us at (877) 714-2362 to schedule a no-cost introductory consultation.
Finance Decoded answers the common questions that people ask about financial planning, wealth management, and tax mitigation.
Walter Pardo is the CEO of Wealth Financial Partners & WFP Tax Partners, located in the historic Liberty Corner section of Basking Ridge, NJ. He is a Certified Wealth Strategist and Professional Plan Consultant with Series 7, 66 and 63 licenses. Walter is licensed in the states of AZ, CA, CT, FL, KS, OH, NY, NJ, IL, PA, SC, and TX, and VA. Walter is a Master Elite member of the Ed Slott Elite IRA Advisor Group℠. He is active in his community in central New Jersey, and currently serves on the Board of Trustees of Loyola Jesuit Center in Morristown.
When not working with clients or volunteering in his community, Walter may be found trying to reduce his handicap at Hawk Pointe Golf Club in Washington, NJ, or playing the piano at home for his wife, Suzanne, and two daughters, Isabel and Natalie.
Registered Representative offering securities and advisory services through Independent Financial Group, LLC (IFG), a registered broker-dealer and investment advisor. Member FINRA/SIPC. Wealth Financial Partners, LLC and IFG are unaffiliated entities. OSJ: 12671 High Bluff Dr. Suite 200, San Diego, CA 92130.
The opinions expressed herein are the writer's alone, and do not reflect the opinions of TAPinto.net or anyone who works for TAPinto.net. TAPinto.net is not responsible for the accuracy of any of the information supplied by the writer.