7 Mistakes We Must Avoid While Doing Financial Planning
5. Don’t get lazy
Sloth is a means of laziness and laziness is not a good trait in investing. According to Luxenberg, “Most investors don’t spend enough time on their retirement planning and don’t review their options sufficiently enough. You have to do your homework, know your options, and determine which are best. When to draw from retirement accounts, how to invest, what investment vehicles to use—all have tax implications, for example.” So, when you have a plan in place, it’s important to stay on top of your investments through your retirement years.
6. Don’t get overly greedy when making money
Being overly greedy in the market tends to lead to investment failures instead of successes. Rather, it is better to be goal-oriented. In fact, chief investment officer of Warren Financial Randy Warren says “People who have goals often strive to reach them. Just wanting to make more money is not really a goal. That’s gluttony. If you are goal-oriented, it will affect your investing strategy. So you may not need to shoot for the moon in terms of investment returns.”
7. Don’t lust after what you cannot have
Keep your retirement planning goals realistic. It is essential that you do not lust after what you can’t have or cannot achieve because you might end up by putting too much at risk in the effort of trying to get it. For instance, if you currently have $1 million in your account and tell your financial planner you want $5 million in three years so you can retire, that would mean that you are lusting after an unrealistic objective. As Warren says “Investing is not wishing for something you don’t have.”