Investors do not monitor their portfolio adequately. Rare is the investor who can place their hands on the Internal Rate of Return (IRR) of their portfolio. An even smaller percentage of investors know how well their portfolio is performing with respect to an appropriate benchmark. The
Retirement Planning Mistake #8
Over confident and lacks patience. Over confidence and lack of patience manifests itself in a number of ways. If you think you can beat the market by picking individual stocks, be very careful. If you want to test your skills, set up two portfolios. Use a passive approach with one
Retirement Planning Mistake #7
Lack of Portfolio Plan Do you have a portfolio plan and is it written down? If you can lay your hands on a plan, you are a rare investor. What is involved in specifying a Strategic Asset Allocation plan? A portfolio plan will first of all identify all the asset
Retirement Planning Mistake #6
It is a mistake to think your portfolio is properly diversified simply because you have chosen stocks or index funds across differing sectors. That’s not enough. Investing across all sectors will not coverall asset classes, but investing across all asset classes will cover all sectors. There is a big
Retirement Planning Mistake #5
This celestial object looks like a delicate butterfly. But it is far from serene. What resemble dainty butterfly wings are actually roiling cauldrons of gas heated to nearly 20 000 degrees Celsius. The gas is tearing across space at more than 950 000 kilometres per hour — fast enough to
Retirement Planning Mistake #4
Investors lack knowledge about the importance of asset allocation. Investors do not educate themselves as to the importance of asset allocation, and what asset classes tend to perform better than others over the long-run. I need not go into the importance of overcoming this mistake as I
Retirement Planning Mistake #3
This celestial object looks like a delicate butterfly. But it is far from serene. What resemble dainty butterfly wings are actually roiling cauldrons of gas heated to nearly 20 000 degrees Celsius. The gas is tearing across space at more than 950 000 kilometres per hour — fast enough
Retirement Planning Mistake #2
Prospective investors carry too much credit card debt. This mistake is a corollary of Mistake #1. Stay out of credit card (CC) debt. Mistake #2 is not so much an investor mistake, but rather a mistake of bad management as it has nothing to do with managing a portfolio. If
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