One of the benefits of using an advisor is the ability to get it right from day one. No need to correct costly mistakes later.
What is difficult to appreciate about paying for advice is that you can’t put a figure on the value of avoiding mistakes if you don’t end up making them. It’s only natural to assume that had you not taken the advice you’d have made all the right choices on your own.
“You can’t put a figure on the value of avoiding mistakes if you don’t end up making them. It’s only natural to assume that had you not taken the advice you’d have made all the right choices on your own”.
So, here’s a list of common mistakes I help clients avoid:
- Unnecessarily trading company shares
- Placing too much faith in ‘star’ fund managers and eventually being let down
- Chasing investment performance after the event
- Not paying enough attention to costs
- Letting valuable tax allowances pass due to the boredom of tax administration
- Using complex solutions, which sound great, but often end up not working
- Following investment fads that don’t work or last
- Trying to time the market to no avail
- Taking media and investment commentary at face value without questioning it
- Confusing the economy/politics with the stock market
- Confusing status and competence in one line of work as a transferable skill
- Not realising you don’t know what you don’t know
- Neglecting diversification
- Taking too much risk
- Taking too little risk
- Underappreciating or ignoring the impact of inflation
- Underestimating life expectancy and the cost of living too long
- Having no patience
- Making changes when doing nothing is best
- Allowing institutions to push their agenda on to you
- Taking advice from your bank
- Becoming emotionally attached to a financial decision
- Becoming caught in the moment and not thinking clearly
- Underestimating the stock markets ability to do unpredictable things (in either direction)
- Not identifying goals in life as well as finance
- Undervaluing the benefit of having a financial plan
- Failing to review plans and arrangements regularly
- Not having adequate insurance
- Not saving enough
- Letting inertia take hold
- Not having a Will and Lasting Powers of Attorney
The list could go on but hopefully, you’ll never have to encounter any of them if you take professional advice.
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