Financial illiteracy is a looming crisis in any investor’s or saver’s life. Therefore, you need to ask yourself fundamental questions before saving or investing. For example, how is this investment taxed? Where can I turn for help? Do I understand the investment? What is my end goal? And many more.
Additionally, having a solid financial plan can be a game-changer regardless of your income level. A plan could help you save for a home, prevent wealth loss in unexpected times, and build a dream retirement.
About Rebecca Miller & Adam Tau
Rebecca Miller and Adam Tau are the founders of Dynamic Wealth Strategies. They have been ahead of the game, helping and guiding savers and investors to build wealth. Their team is well-versed in giving a helping hand to first-time and experienced investors to get organized and be on track for their goals. They will help you get started with financial strategies that adapt to your changing lifestyles and goals. According to Rebecca and Adam, your plan should evolve as you do. But what are some of the most mistakes savers and investors make?
- Lacking a financial plan
Most savers and investors lack a financial plan. Hence they are not in control of their income, expenses, investments, and debt. The majority do not know how to manage their money to achieve their goals.
- Having Unclear Investment & Saving Goals
Most investors invest in making more money. The majority do so since they want returns. Therefore, it would help if you had clear and specific goals of what you want to achieve in specific time frames. If possible, put your goals down on paper. For example, “I want to achieve $500,000 by the close of the year,” or “I want to lower my debt by 30% by mid-year.”
- Wanting Quick Returns
Most investors don’t allow their investments time to grow. Most investors invest with a short period in mind. Short timelines for high returns mean taking many risks. You’d have to be ok with the investment going the other way (in terms of your comfort level with that type of loss and your financial ability to overcome that type of loss). We see many young investors taking much risk with money that perhaps shouldn’t be as exposed to that kind of loss because they read about a get-rich-quick or hot stock tip. You don’t read as much about the get-broke-quick tips!
- Choosing the wrong institutions
Don’t choose an institution just because your parents had money with them or because you had a mortgage with them. No. Choose yourself the best provider after doing proper research and analysis.
- Chasing The Market
Specific investors have a habit of entering and exiting an investment to profit from the trend or occurring development. However, you need to understand the trend and determine whether or not it’s appropriate and beneficial for you. Additionally, you need to understand the tax liability. Often, investors, young and old, forget that when you make a return, the taxman comes knocking.
- Failing To Diversify
Did you know you reduce the risk you are exposed to by diversifying your investment? Diversification may help you to maximize your returns.
- Not Prioritizing Your Savings
Prioritizing something makes you carry it with a greater gravity and purpose. You will be interested in how your money could grow and generate wealth, and you may become inspired to continue investing toward your goals
.Not Tracking Your Goals
Not tracking your goals means that you’re likely not to accomplish some of them, if not all of them. If your goal is to save 80 to 90% of your annual pre-retirement income, you may find that you fail to do that because you’re not keeping track of your money. You lack a financial awareness of where your money is going and whether it’s going towards your goals.
- Lacking A Guide
Some investors feel they can step foot in any space and do excellently well. Only for them to come back crying because of the enormous losses. Before investing, hire someone experienced and licensed to guide you through it.
Procrastination means that a saver or an investor will always struggle to meet their financial goals. We have all been guilty of procrastinating. But, if you don’t control this tendency, your financial plans will always be a pipe dream.
Get in touch with Dynamic Wealth Strategies and get started today.
Securities and advisory services offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC, and a registered investment advisor. Dynamic Wealth Strategies and MAS are not affiliated entities. Investing involves risk, including the potential loss of principal. It is not possible to invest in an index. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.
This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Our firm is not permitted to offer and no statement made during this presentation shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency.