JE Wilson - FiftyWealth Podcasts: Recent Episodes
James Wilson
James Wilson covers the top 10 Investing Mistakes he has seen investors make in his 30+ years as a Financial Planner.
In our 50’s, you might think we would know better. Armed with decades of life experiences and decision-making, we reach our peak earnings years full of financial wisdom. Right? Well, not so fast.
If you made investment decisions a few years ago and now your goals have changed, a mid-course adjustment may be needed. Your financial success and life are not linear. There are almost always unexpected positive or negative personal financial events. Regular review of your investing framework and your actual investments keep you on the path towards wealth wellness.
Attempting to out-smart the markets is a common, yet dangerous, practice. Some investors believe that if they can possess “special knowledge” or spot certain trends, that they can “out-smart” the market.This can be a costly mistake. Each day there are literally millions of participants in the stock market and the collective wisdom of these millions helps set stock prices.
Many investors underestimate the role of emotions in their decisions. The range of emotions within the long-term investing cycle ranges from optimism to elation to euphoria at market highs and nervousness to fear and panic at market lows. While it is impossible to totally separate emotions from investment choices, understanding your emotional makeup is a good first step.
Day-to-day or week-to-week price fluctuations are not the same as permanent loss of investment capital.
The rate of inflation is a “silent killer” for many investors because most people only pay attention to pre-inflation rates of return.
There has been substantial research over the past couple decades within the area of behavioral finance.
Most of us learn from experience the things we can do without help and those that require more expert assistance.
Brokers, bankers, and insurance salespeople are not fiduciary advisors. They may be nice people that you see at church or the club, but their interests come before yours due to how they are paid.
This mistake is closely tied to #1. Without context, you have a tendency to make “instant choices”, decisions that appear good today.
Many people deal with investing in the same way - like they are hungry and driving around aimlessly looking for a place to eat. When it comes to investing, it’s essential that you have the context of a financial plan.