TOP MISTAKES MADE BY AVERAGE INVESTORS
1. Failing to Diversify
- Holding too few funds
- Investing in the same kinds of funds
- Loading up on company stock
2. Rarely Changing Allocations
- 80% of participants never make changes to their original fund allocations.¹
3. Making Decisions Not Based on Research or Long-Term Strategy
- Using tips, rumors and latest financial news to make investment
decisions.
- Relying on friends, family and co-workers for advice.
- Chasing returns, trying to time the market or using “buy-and-hope” investment
strategies.
4. Not Acting on Advice from Financial Advisor
- Most Financial Advisors stay involved with their client’s
investments, but prefer to leave their 401(k), 403(b) and 457 accounts
alone.
- When the average investor gets advice from a Financial Advisor they
often fail to follow through on that advice.
5. Not Saving Enough
- With the U.S. Social Security System being strained and many companies
discontinuing their pension plans, the 401(k), 403(b) and 457 plans
become even more important.
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