The Biggest Investment Mistake People Make (and What to Do Instead), Ep #51

<p>This mistake is dangerous when it comes to the investment selections that you make. To avoid this mistake, you have to focus on <em>why</em> you’re investing in the first place. What is it actually for? You can’t make poor decisions with your “serious” money that’s devoted to providing for your retirement. </p> <h2>You will want to hear this episode if you are interested in...</h2> <ul> <li>[2:06] Check out the resources on my website! </li> <li>[5:47] The most dangerous mistake I see people make</li> <li>[9:06] #1: What is your risk tolerance?</li> <li>[10:05] #2: What are your goals? </li> <li>[11:19] #3: What are your investment philosophies?</li> <li>[12:42] #4: Your values might dictate your portfolio choices</li> <li>[13:52] #5: Do you understand your investments?</li> <li>[15:44] Your investment strategy should be based on you</li> </ul> <h2>The most dangerous mistake I see people make</h2> <p>I see this all the time, especially if there’s a fad in play. What does that mean? Most recently, AMC, bitcoin, and GameStop are trending in the trading world. What about gold? The media hype and headlines confuse people. It can stir greed or the “fear of missing out” in people. Perhaps it stirs feelings of jealousy when you hear that other people are getting rich quickly.</p> <p>Taking investment advice from people who aren’t qualified is the biggest mistake I see. Whether it’s your brother-in-law or neighbor giving you investment advice, it is <em>dangerous</em>. The elevator to success is broken—you <em>have</em> to use the stairs. If I can give any advice to the people investing their life savings for retirement it is this: don’t get suckered into the headlines.</p> <h2><em>These</em> should be the determining factors of how you invest</h2> <p>What factors do I look at to determine how your retirement dollars should be invested?</p> <ol> <li><em>What is your risk tolerance?</em> Do you lose sleep when you see your retirement account statements have lost money? Or do you not care if your retirement nest egg flu