Common Financial Mistakes #6: Losing Perspective
In our top financial planning mistakes series, Zach Conway of Conway Wealth Group discusses how investors too often lose perspective on what’s truly important in their lives.
We’ve reached the number six spot on our list of the top seven financial planning mistakes. Losing perspective. We all want to see our money grow. Watching our accounts increase in value over time gives us a sense of confidence and security in our future. As a result, investors start to assume that investment returns define financial security, family livelihood, and true happiness. Suddenly watching CNBC and staring at your account balance becomes more important than living a balanced life by design. Here’s the fix: turn off your TV, put down the iPad. Steer yourself away from the minute-to-minute ups and downs of markets and toward the things you love. Forty years from now, will you really care whether or not each position in a portfolio beat benchmarks in a given year? Or will you care that you lessened stress, spent more time with your family, and started doing the things you loved? Financial advisors can help build tailored and diversified long-term portfolios while reminding us to avoid the habits that only cause emotional distress.