Learning from our mistakes is a good thing. After all, if we learn from our mistakes, we are likely not to repeat them. Sometimes psychological or emotional factors contribute to making a mistake or knowing how to avoid it. Here are the top mistakes investors make and how to avoid them:
Portfolio cash accounts are typically kept for reinvesting opportunities or other events such as Required Minimum Distributions (RMDs). Investors and their advisors often want to move cash to securities for performance in an environment where interest rates are low or effectively at 0%. There are reasons that cash accounts should always be present in an investor’s portfolio:
2020 has been a year unlike any during our lifetimes with the COVID-19 pandemic and a poor economy. Many have been impacted with lay-offs and job losses and realize they were unprepared financially.
It is human nature to seek advice when things aren't going well or when an unforeseen event occurs.