Getting set up for retirement is important to a lot of people, and a financial portfolio is often the way that is done. Today, Serge is joined by special guest, Kate Stalter, to discuss the common mistakes people make with their portfolios. Kate got her start in the financial industry working for Bill O’Neil at the Investor’s Business Daily. She reached a lot of people through speaking engagements with IBD, but knew she wanted to work closer, one-on-one, with people. She accomplished that by getting into the registered investment advisors business. While she’s witnessed a lot of success stories, she’s also seen a lot of common, and easy to avoid, mistakes made.
As we come off of a 12 year stretch where it was easy to make money, it’s hard to get people to understand that what worked then won’t work now. So many people have gotten into the habit of trading the flavor of the month, and not sticking to a strategy that was designed for what they wanted to accomplish. Both Kate and Serge have seen it time and time again. Self-directed investors will usually lose money in the long run.
It’s important to be broadly invested, but people usually have a bias toward their own country, their own region, and stocks they are familiar with. Self-directed investors get caught up in breakout stocks like Tesla, Amazon, and Apple. Most of the time it’s based on the hype created by financial media. Serge and Kate both agree it’s so important to understand that financial media are not your financial advisors, they really are in the entertainment business. They are beholden to their sponsors, not to you. Likewise, subscribing to a financial newsletter is not personalized advice. If you truly want a strategy that is tailored to you, you need a financial advisor.
If you’ve lost money in the stock market, don’t be ashamed. Just like someone who isn’t a dentist wouldn’t pull their own tooth, you are not a stock market expert. Even though the financial media will try to tell you it’s so easy, it’s really not. Experts will know the right questions to ask as an objective third party. If you’re curious what a financial advisor could do for you, head over to Blue Marlin Advisors, and sign up to have your portfolio looked at.
What You’ll Learn:
What it means to be broadly invested.
Why you should separate your emotions from your money.
The overall success rate with constant trading.
What questions a financial advisor might ask you.
Favorite Quote:
“The financial media are not your financial advisors. They really are in the entertainment business.” -Kate Stalter
