Scottsdale, AZ (PRWEB) May 12, 2011
Jackson Financial Advisors (http://www.jfawealth.com), a leading wealth management firm in Scottsdale, cautions people to avoid four of the most common investment mistakes. This warning is a part of a larger campaign to educate people about specific actions that can wreck retirement plans and create stress on a family.
- Over concentration in one asset type: Investors often put themselves in an all-or-nothing scenario, in which their risk of failure is very high. Diversification is a smarter alternative and a key aspect of successful investing.
- Buying the hottest current investment: When people chase headlines about the popularity of a particular stock or commodity, they leave themselves vulnerable to the inevitable collapse that is a part of any bubble or economic mania.
- Being overly aggressive: People often underestimate their tolerance for volatility. In other words, they do not understand the risks associated with a specific project. All investments have some risk, including a bank-run savings account that may be subject to erosion from inflation or other outside economic pressures. Failing to understand investment returns and how risk corresponds with returns is a pitfall with investing. Higher returns have higher risk. For example: if an investor is on track to reach his or her income goals in retirement by earning 6% over the long run, thanks to well diversified portfolio, shooting for an even higher return of 9% will involve significantly more risk and volatility.
- Being undisciplined: Some people “bounce around” from one investment to another, never creating a long-term plan for financial success. These actions often result in lackluster investment returns or loss of money. Always have a purpose connected to an investment, whether it concerns underwriting a short-term expense or planning for something more substantial like retirement.
"These errors are avoidable, provided people take the time to more thoroughly review their investment priorities and seek to educate themselves over time. A financial advisor can be a valuable guide to help navigate through these pitfalls and help create discipline for ones financial affairs.”
Our approach acknowledges this reality and the implications that are part of any economic situation. In fact, intelligent investing and successful results are inseparable: a union built on an accurate review of the way financial markets operate. Ignoring these truths is one of many reasons – the 4 chief ingredients – behind otherwise preventable financial losses," says Robert L. Jackson, CFP® and President of Jackson Financial Advisors.
Customized Financial Goals: Jackson Financial Advisors in Action
Jackson Financial Advisors continues to enjoy sustained success through its customized brand of financial planning. “Our clients enjoy the independent analysis we provide, which reflects our successful ability to research, assess, plan and protect the portfolios we oversee. These principles are the foundation of our success and the reason behind our management of over $100,000,000 in assets," states Mr. Jackson.
About Jackson Financial Advisors
Headquartered in Scottsdale, Arizona, Jackson Financial Advisors provides high net worth individuals and families with asset protection and performance through customized investment planning. The firm develops effective long-term relationships with select clients who want personalized financial services. Free of the pressures that govern large brokerage firms, Jackson Financial Advisors has all the security its clients deserve, including SIPC insurance. A trusted resource, Jackson Financial Advisors combines integrity, insight and independence. For more information about Jackson Financial Advisors, please visit http://www.jfawealth.com.
Registered Representatives offering securities through Cambridge Investment Research, Inc., a Broker/Dealer member FINRA/SIPC. Investment advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Financial Planning services offered through Jackson Financial Advisors, Inc., a Registered Investment Advisor. Cambridge and Jackson Financial Advisors, Inc. are not affiliated.