12 Obstacles to Investing Success

A disciplined investing strategy, whether for a child’s college costs or your retirement, can help you potentially grow your savings over time. However, success depends in part on avoiding obstacles that can trip you up and understanding uncertainty is always a part of investing. When investing for the long haul, beware of these obstacles:

1. Starting late

Time means everything when it comes to investing success, so use it to your advantage.

2. Underestimating time

Time may not literally fly by, but ask any older person how quickly it seems to go. Don’t put off to tomorrow what you can start today.

3. Overreacting

The coronavirus outbreak sent stock and bond markets into dizzying spins, as investors fled the stock market for relatively safer investments. Those with long-term horizons who stay the course may withstand the onslaught if this mimics recoveries from previous market-shaking events.

4. Under-reacting

“Buy and hold” should not apply to every investing decision. If your investments have poor long-term prospects or no longer fit your strategy, consider selling them.

5. Investing too aggressively

If you’re in or near retirement, you may not have the time to recover from down markets. Invest appropriately.

6. Investing too conservativley

With enough time you may overcome market downturns, so invest for growth when you have time.

7. Paying too much

High investment fees and charges detract from net earnings, so make sure your returns are worth the cost.

8. Staying too loyal

Loyal employees may like to own their employers’ stocks, but too much of a good thing is a bad thing. Diversify.*

9. Duplicating efforts

Know how target-date and balanced mutual funds affect your asset allocation mix.

10. Following the herd

Jumping late on a hot investment’s bandwagon can become a costly investing mistake.

11. Timing the market

Even the professionals can’t do it, so don’t try.

12. Avoiding help

Talk to a financial professional for help with your investing strategy.

*Diversification cannot eliminate the risk of investment losses. Past performance won’t guarantee future results. An investment in stocks or mutual funds can result in a loss of principal.