As the financial markets remain unsettled, Texas investors who are without long-term financial plans are making the same five costly errors over and over again, according to a warning issued today by Beaird Harris Wealth Management, Inc., an investment advisory firm in Dallas, Texas.
Beaird Harris Managing Director, Steve Lugar, CFP® said: "Uncertainty and confusion are the No. 1 enemies of the investor who operates blindly and without the benefit of a long-term plan. When you are trying to read uncertain market signals every day and end up jumping erratically from the one hot trend or product to another, the only thing that is likely is that you will end up worse off than when you started. We want to encourage investors who are grasping at straws today to take a deep breath, calm down and get focused on a real plan."
The five most common investor mistakes focused on by Beaird Harris include: chasing returns on asset classes that have done well recently and ignoring broad diversification; treating "hot" investment alternatives (such as hedge funds and private equity funds) as though they are asset classes; taking a short-term view of tax avoidance; over-concentrating in real estate; and ignoring the unintended consequences of today's most popular mortgage product; the adjustable rate mortgage.
THE FIVE MOST COMMON ERRORS
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