Those who offer financial planning services in Australia aren’t always the same. Many give blanket advice or try to fit every client into the same system of investing without first assessing their needs.
At Approved Financial Planners, we know that everyone’s situation is as different as their fingerprints and we go to great lengths to get all of the information we need to help you formulate a plan to get you where you want to be when you want to be there.
We strongly suggest advice from a Perth professional, but here are five DIY mistakes that we think it would be wise to avoid.
Not Doing Your Homework
Whatever you plan to use as an investment vehicle, your chances of success are usually proportionate with the knowledge you have amassed concerning that investment vehicle. If you don’t, you might as well be a welder trying to do heart surgery.
Equating Past Performance with Future Potential
Many beginning investors make decisions based on what worked in the past for their friends and acquaintances. This works sometimes, but can also wipe out your investment career before it starts.
Putting All of Your Eggs in One Basket
This old adage is particularly relevant to investing. If all of your funds are in one vehicle or market segment, you are at the mercy of that market. Those who had sunk all of their assets into shares found this out the hard way during the Global Financial Crisis. It pays to diversify.
Forgetting Liquidity
If all of your assets are tied up in non-liquid assets, it can cause financial paralysis. If you need money for emergencies or come upon a great investment opportunity, you may require the flexibility that you create by keeping some liquid assets available.
Timing the Market for Short Term
Some people have created huge success stories by timing the market. Unfortunately,the majority of those who try it are huge failures. The law of averages is in favour of the long term investor.
Bonus Tip
Call Approved Financial Planners today for a consult: 08 6462 0888.