Watching too much business TV
The mistake I see most often now is clients watching the investment news channels too much. They hear so many talking heads prognosticating on what the market will do next, that they feel compelled to try to just do something to their portfolio. I work to get them to understand that they have a financial plan in place that has the shock absorbers to deal with market volatility.
Do not try to time the market. Just watch your own personal time horizons for each of your goals and as they approach, make sure the portfolio risk is ratcheted down so that your goals are realized. Conversely, don’t get greedy if the market is moving up at the time you are selling because you reached one of your goals. As you reach your goals, take the money off the table ... you’ve won!
--Peter T. Jaworski, McGladrey Wealth Management LLC, Boston, Mass., 02129, 617-241-1321, firstname.lastname@example.org