Financial planning can seem complicated. We understand that investing and making the right financial decisions isn’t always easy. Thankfully, we’re here to shed some light on some areas you can work on as an investor!

1.      Not setting Financial Goals

Setting goals and achieving those goals is rewarding and self-fulfilling for anyone who has enough discipline to execute on their ambitions. In order to make plans for the future, it’s essential to have a clear understanding of where you are at this present time and where you wish to be in the future. Goals should be precise, measurable, attainable, relevant, and timely. By sitting down and working through where you want to be in the future, you can gain a clear understanding of the steps you can take to get there today. For more on setting goals, be sure to check out “How to Set Financial Planning Goals” on our blog! (Coming Soon!)

2.      Using a Broker

A financial advisor that’s a broker, facilitates the buying and selling of financial securities or products between a buyer and seller. In doing so, he/she receives commissions on those sales. A fee-only financial advisor has a fiduciary responsibility to act in your best interest. Because a fee-only financial advisor is paid by his or her clients, they do well by doing well by their clients! For more on fee-only advisor check out “What is a fee-only financial advisor”

3.      Listening to Market News

Turning off the market news and tuning out market analyst will help your investment choices in the long run. Nobody can predict what the market will do. Our job as wealth managers are not to select and time the market but rather plan for our clients so they’re investments are diversified, so they can better withstand volatile markets.

4.      Obsessing Over the Market

Obsessing over the market won’t change the market and letting it consume you may have a negative effect on your investments because of the extra fees and commissions you’re paying when you buy, sell, and trade. When we let our emotions (fear) take-over, we have little control over the outcome. That’s why a wealth manager helps their clients reach financial success by acting on a plan not reacting to the market. At True Measure, we help to guide you to calm waters when you’re feeling anxious about your investment choices. (After all, we could all use a little grounding from time to time!)

5.      Putting all your eggs in one basket

If you’ve heard it once, you’ve heard it a million times: diversification. The idea of diversifying your portfolio is that the positive performance of some investments will offset the negative performance of your other investments. The logic is simple but the process and planning are timely and can be complicated. When looking for experts in the field, do your homework and try to work with a fee-only financial advisor. For more on this check out “Why you should hire a fee-only financial advisor.”

Quality financial literacy and tips can help you work towards becoming a consciously-aware investor. At True Measure, it is our passion to educate and inform investors so they can work towards becoming their best-selves.

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