Seven investment mistakes you can easily avoid.

August 20, 2019 / Knowledge Centre

Investment mistakes to avoid:

Shoreline advisers regularly come across one or more of the following seven investment mistakes which you can easily avoid. We recommend that you start your plan the correct way and steer clear from the below problems. The saying “A job well-conceived is a job half done”, also applies to investing.

Mistake 1 – Start too high:

Choose a regular saving plan contribution that you can easily maintain throughout the term of the plan. If you already know in advance that you can’t maintain your high premium in the near future invest accordingly.

Mistake 2 – Invest too long:

It is easy to set-up one long-term saving plan, but it is better to have several plans with different maturity dates. Time these dates to events in your life such as: education fees for your children, your personal retirement or even a short term, such as a property purchase in five-ten years.

Mistake 3 – Stop too soon:

Stopping contributions early on during a long term saving plan will seriously impact it’s performance. Your circumstances can change beyond your control, but the best possible returns are achieved if you maintain your contribution as much as possible.

Mistake 4 – Switch investments too often:

Investment performance from the past is no guarantee for the future. We all read that line a million times, but it is true. What happened in the past will not be replicated ever in the future in the same way. Select an investment based on the solid long term performance potential of that sector or market and forget the short term noise.

Mistake 5 – Don’t do your homework:

Some people get swept away by a charismatic adviser and forget to do their homework. Advisers are supposed to advice you on the plan, but not all advisers have the client’s best interest at heart. Therefore, like with anything in life, trust but check and read the product materials your adviser gave you. Your adviser should send you all relevant product details and and explain his recommendation. Unless you have informed yourself fully don’t sign any agreements. You can always contact Shoreline for a second opinion.

Mistake 6 РBelieve fairy tales: 

If the investment adviser you work with promises you golden mountains, think again. Promises of guaranteed returns well above the market rate are not possible. If it would be he wouldn’t need your investment and would own an investment bank instead. Always be realistic.

Mistake 7 – Don’t be afraid to invest:

Sometimes clients are simply afraid to invest for non logical reasons. Whatever is holding you back, please note that time passes by very fast and cannot be bought at any price. Therefore, your first priority is to look after yourself. Start an investment and create options for yourself  in the future.

Shoreline is happy to assist you with any questions you may have on an existing investment plan, or any options you are currently considering.