Investors are facing a new year and new opportunities to win - or lose - should avoid the 10 most common mistakes in financial planning.
"He does not want to make money. You have to understand what money is and what the deadline for completion of goals," says Kola Deru, a Certified Financial Planner at Royal Bank in Toronto.
"From what is the basis for many other mistakes."
Here are 10 common mistakes year after year planners report:
1. The lack of a plan, "said Benoit Poiliquin is a Certified Financial Planner and Chartered Financial Analyst, Vice President of Pallas Athena Investment Counsel in Ottawa.
"There is a difference between intention, as the desire to go after more money and a timetable to it. The card is a number of options that you need to do to achieve the goal. The options include the allocation of funds to example, between paying the debts and pensions.
"The investor must have a plan, without them in the jungle, the possibilities are lost."
2. Too much emphasis on the reduction of taxes "people, the tax planning of the fundamental problem of making money means," said Marc Stern, Vice President and Portfolio Manager and Head of Wealth Management discretionary Industry Alliance Securities Inc. in Montreal.
"Tax administration is always subsidiary to the fundamental problem of making profitable investments," he said.
3. If you do not want to estimate the risk of investing in private or not sufficiently diversified, "The financial markets have integrated hazard. It is the responsibility of the investor or his adviser to find and their plans to impose" M. Star.
4. Flea Market and for the wrong reasons - to buy things, because without assessing why they are fallen down, "said Jackee Pratt, vice president and portfolio manager of the Fund of the matrix in Toronto.
"We need to look at the base, and then analyze the current price and what the future hold for the shares or bonds or other assets," he said.
"Maybe for good reason, cheap."
5. Hubris is a mistake to make the ego of his trial, "said Mrs. Pratt.
"You can with a paper on the action and refuse to change, even if the main events of the application for a change of attitude."
6. Chasing the names of famous big names do not follow, because they are famous and not ignore the signs of the crisis in the development of the theory that society is too big or too important to fail.
Never forget, Nortel Networks, once a big name and now insolvent, advised Mrs. Pratt.
7. The lack of clear objectives "Investors are not sure what you are investing for which you are more at risk than if there is a clear advantage in mind," says Poliquin.
"The old adage that if you do not know where to go, you can reach not. And that means that the target price, stop-loss orders or plan to add a position when a stock or other assets of convicted U.S. dollars , where a decrease in prices. "
8. Go warn your portfolio looking back on the sale of mutual fund prospectuses that future results are not necessarily in value in the past.
In fact, says Graeme Egan, a financial adviser with KCM Wealth Management Inc. in Vancouver, "as it is likely that the benefits of a stock or a fund's average performance for the group after an exceptional year. What really counts is the fee structure and investment -. no performance last year "
9. monitor, evaluate otherwise and the cost of an otherwise sound investment in mutual funds, costs and fees are administrative fees, is bonds, the difference between the price paid for the car dealership and takes it less, and in many management functions of the tax by a flow of oil stock and junior mining operations sold, the cost for the cash calls will be suspended. Investors need to know its cost, "said Egan.
10. With more financial services is necessary, "said Andy husband, a Certified Financial Planner, Financial Services manages the AMH in Edmonton." Many people are financial products that are sold not complex, you get paid with the payment options that do not -.. Life, that all costs .... Buy what you need to understand has been added to what you are buying a great rule that break many people. "
"He does not want to make money. You have to understand what money is and what the deadline for completion of goals," says Kola Deru, a Certified Financial Planner at Royal Bank in Toronto.
"From what is the basis for many other mistakes."
Here are 10 common mistakes year after year planners report:
1. The lack of a plan, "said Benoit Poiliquin is a Certified Financial Planner and Chartered Financial Analyst, Vice President of Pallas Athena Investment Counsel in Ottawa.
"There is a difference between intention, as the desire to go after more money and a timetable to it. The card is a number of options that you need to do to achieve the goal. The options include the allocation of funds to example, between paying the debts and pensions.
"The investor must have a plan, without them in the jungle, the possibilities are lost."
2. Too much emphasis on the reduction of taxes "people, the tax planning of the fundamental problem of making money means," said Marc Stern, Vice President and Portfolio Manager and Head of Wealth Management discretionary Industry Alliance Securities Inc. in Montreal.
"Tax administration is always subsidiary to the fundamental problem of making profitable investments," he said.
3. If you do not want to estimate the risk of investing in private or not sufficiently diversified, "The financial markets have integrated hazard. It is the responsibility of the investor or his adviser to find and their plans to impose" M. Star.
4. Flea Market and for the wrong reasons - to buy things, because without assessing why they are fallen down, "said Jackee Pratt, vice president and portfolio manager of the Fund of the matrix in Toronto.
"We need to look at the base, and then analyze the current price and what the future hold for the shares or bonds or other assets," he said.
"Maybe for good reason, cheap."
5. Hubris is a mistake to make the ego of his trial, "said Mrs. Pratt.
"You can with a paper on the action and refuse to change, even if the main events of the application for a change of attitude."
6. Chasing the names of famous big names do not follow, because they are famous and not ignore the signs of the crisis in the development of the theory that society is too big or too important to fail.
Never forget, Nortel Networks, once a big name and now insolvent, advised Mrs. Pratt.
7. The lack of clear objectives "Investors are not sure what you are investing for which you are more at risk than if there is a clear advantage in mind," says Poliquin.
"The old adage that if you do not know where to go, you can reach not. And that means that the target price, stop-loss orders or plan to add a position when a stock or other assets of convicted U.S. dollars , where a decrease in prices. "
8. Go warn your portfolio looking back on the sale of mutual fund prospectuses that future results are not necessarily in value in the past.
In fact, says Graeme Egan, a financial adviser with KCM Wealth Management Inc. in Vancouver, "as it is likely that the benefits of a stock or a fund's average performance for the group after an exceptional year. What really counts is the fee structure and investment -. no performance last year "
9. monitor, evaluate otherwise and the cost of an otherwise sound investment in mutual funds, costs and fees are administrative fees, is bonds, the difference between the price paid for the car dealership and takes it less, and in many management functions of the tax by a flow of oil stock and junior mining operations sold, the cost for the cash calls will be suspended. Investors need to know its cost, "said Egan.
10. With more financial services is necessary, "said Andy husband, a Certified Financial Planner, Financial Services manages the AMH in Edmonton." Many people are financial products that are sold not complex, you get paid with the payment options that do not -.. Life, that all costs .... Buy what you need to understand has been added to what you are buying a great rule that break many people. "
