Three Investing Mistakes To Avoid

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

If you haven't invested before, then we know how tricky it can be to get started - which stocks and bonds should you be looking into? What exactly is the difference between stocks and bonds to begin with? Not only that, but how much should you consider investing? Although the answers to most investing questions will differ depending on your current financial situation and future financial goals and aspirations, the one thing we all have in common is the potential to make a mistake and take an incorrect approach.

Since we know how important it is for investors to make the right decisions the first time around to avoid a sticky situation down the line, we put together the following list of three mistakes to avoid:

Failure To Plan: Whatever the reason may be, all too often people dive into the investment process without having a plan. While this may work for individuals who aren't phased by the idea of losing money, for those who would prefer to keep their wallet full, it's essential that a plan is devised prior to making any decisions. By developing a strategy in advance (which of course requires research and possibly even a trip to a financial advisor such as ourselves), you can begin to guide yourself to the specific types of investments that you expect will bring you the best return.

Living In The Past: If you have family members or friends who have invested before and experienced great success, it's only natural to try and reproduce the results they received by making the same decisions they did. However, attempting to "chase past performance," as Fox Business puts it, could put you behind since you aren't focusing on the new opportunities that are in front of you.

No Diversity: Although a specific company, for example, may be predicted to soar, that doesn't necessarily mean you should invest all of your money in them. After all, if the company took a turn for the worst, so would your money! In order to truly get the most out of your experience, it's important to allocate your money across several investments rather than focus solely on one.

By keeping these three mistakes in mind during your investment journey (and by avoiding them, of course) you can rest assured knowing that you are on the right path! But, like we said, investing can be tricky, which is why you should always meet with a financial advisor to ensure that the strategy and approach you are using is right for you!

If you're ready to get started with the investment process, contact us at (516) 932-5130 today; our team of financial planning professionals have years of experience with investing and can help steer you in the right direction with all of your investment and financial needs.