Wealth Management

No one likes to admit they’ve made a mistake; we’ve all been there. But even simple and seemingly harmless mistakes can impact future finances negatively, creating unnecessary headaches and worry down the road. The first step to protect yourself and your future is to become aware of the common wealth management mistakes most people make…so you can avoid them.

Top Five Wealth Management Mistakes

1. Flying Solo

One of the biggest wealth management mistakes people make is going at it alone. While you should learn as much about investing as you can, a do-it-yourselfer most likely won’t have the necessary tools, time or experience to research and monitor their portfolio the way a professional wealth management service can provide.

Don’t miss out on important investment opportunities, get the insight you need on all aspects of your financial well-being to create effective strategies not only for investments, but also tax and estate planning, insurance and retirement. Establish a plan. Follow the plan. You’ll be surprised how successful your future can be.

2. Unprepared for the Future

Americans are living longer than ever before; in fact, just since the year 2000, life expectancy has increased by two years.  That means more individuals are making it to benchmark ages like 50 and 65 which can affect the future needs, including retirement plans.

But, unfortunately, from a lack of savings and unexpected expenses to a nonexistent financial plan, many studies demonstrate just how unprepared most people are for retirement. When it comes to your longevity, preparation is key. Although, not investing early isn’t necessarily reversible, working with an advisor can help provide the insight you need to maximize long-term results.

3. Failure to Diversify Portfolio

Another big mistake many make is simply “putting all their eggs in one basket.” Failure to diversify can potentially be devastating. For investors looking to do well over the long term with less risk should acknowledge the potential roadblocks to sticking with their current portfolio and instead consider a diversified portfolio.

As an important risk management technique, a diversified portfolio combines a variety of assets to create more consistency and improve overall portfolio performance; it’s one of the key elements for a sound investment strategy.

4. Falling Victim to Emotional Investing

Fear and emotions can get in the way of making good decisions in life; especially when it comes to investing. Acknowledge your emotional tendencies and try to get ahead of them to best position yourself for those times of turbulence.

If you don’t, it can lead to illogical decisions that can hold you back. Working with a professional advisor is one recommended way to help take the excessive emotions out of the equation.

5. Keeping up with the Joneses

Constantly looking at what your peers are doing? The desire to keep up with the Joneses (read: greed) can quickly snowball out of control; if you can't pay for “wants” up-front, it might be time to rein in your lifestyle.

Instead of falling into the trap of trying to match (or beat) someone else’s investment strategies, envision where you want to be in five, 10 or 20 years…and beyond. Establish your own investment goals and develop your own long-term investment strategies prior to making any decisions.

Protect Your Future with Wealth Management Services from Hudson Point Capital

At Hudson Point Capital, our wealth management services are tailored to each client’s personal investment long-term goals; it is not a “one size fits all” approach. Due to the complexities of investing for wealth, we will help guide you through all your wealth planning needs and address your goals- avoiding any mistakes along the way.

Contact us today at 732-321-5244 to schedule an appointment and learn more about protecting your future.