The article and opinions in this publication are for general information only and are not intended to provide specific advice or recommendations for any individual. We suggest that you consult your accountant, tax, or legal advisor with regard to your individual situation.
With tons of tips and advice constantly being thrown around, it’s common for investors to be confused about what move to make next. When working with a financial advisor, it’s essential to know the difference between an independent investment advisor and a typical financial advisor. An independent advisor doesn’t sell you something to invest in but instead offers the best financial advice you can get. On the other hand, a regular financial advisor is selling you financial products for you to invest in since they earn a commission. These advisors can come off as biased since their pay depends on it. In order to help you make a suitable investment, let’s take a look at investment mistakes to avoid.
Improperly titling accounts has been a prevalent mistake for a very long time. For example, a client might have a real estate plan that clearly states there is a joint and separate property, but if the account title on the paper isn’t correct, then the entire real estate plan could be in trouble. Another common mistake is listing the wrong person’s name as a beneficiary on IRAs and retirement accounts.
Too many securities of one type
It’s prevalent for investors to misinterpret what diversification in their portfolio may means. Investing in multiple investments within the same asset class is not diversification. Instead, you should be investing in various types of asset classes to give your portfolio the diversification it needs to help mitigate risk.
The client has multiple advisors
Working with multiple advisors can hurt you and your investments in the long run. With differing and possibly conflicting advice, you may find it hard to make a final decision and your strategies may be working against each other if not intentionally aligned. Being honest with your advisor and sharing complete information is the best way to receive the best advice and strategies.
Securities offered through Kalos Capital, Inc. and Investment Advisory Services offered through Kalos Management, Inc., both at 11525 Park Woods Circle, Alpharetta, GA 30005, (678) 356–1100. Retirement Income Strategies is not an affiliate or subsidiary of Kalos Capital, Inc. or Kalos Management, Inc.