Investor Behavior: Caveats to Smart Investing

Individual Investors Continually Under Perform the Markets

Year in, year out, investor behavior causes individuals to react emotionally to economic, market and political news, which costs them a lot in the long run.

Those who have sat on the sidelines waiting to see the outcome of the election have missed record breaking stock market performance. When the boat’s at sea, you have to wait for the next one. Of course, past performance is no guarantee of future results.

An investor could have found multiple reasons every year to pull their money out of the market or wait for things to settle down or recover. Meanwhile, the best returns over time passed them by. Why? Because fear outweighs greed every day.

Unfortunately, many people avoid seeking advice due to a different fear: That of being criticized for mistakes they have made. Realize that everything in the past was a learning experience and positions you better today to make smarter decisions about the future. Draw a line in the sand and move forward from there.

Investing in 2017 & Beyond

Investors who work with investment professionals typically ride out the perceived or real problems and have achieved better long term results.

My crystal ball is still on back order, which is why PlanPrep offers a well diversified selection of low cost, tax efficient exchange traded funds (ETFs) from some of the best known providers in the industry. Our clients are never charged for trades in their account. PlanPrep covers it all with our investment management fee.

Coming Soon to PlanPrep

We are adding a platform that uses a sophisticated process to select ETFs, minimize the impact of taxes, and rebalance your portfolio appropriately. Bye-bye market timing!

There won’t be any 529 plans, but there are no account minimums either. Our financial planning services are available at no charge for accounts with balances of $250,000 or greater after the first year, but you are welcome to engage us at any time you need advice.

Stay tuned!

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