You can avoid these 4 investment mistakes many nurses make

  1. You have no idea how you measure diversification within your portfolio and at the same time you have not worked with your financial advisor to help you identify your own personal risk tolerance level.


    1. It is critically important that you gain an understanding of how your portfolio is diversified and it is just as important that you understand your personal risk tolerance.  Risk tolerance can be many things but to begin you will need to see how your portfolio could move and see if you would be able to handle the downswings in the market.  If you find out that you wouldn’t be able to handle the downswings that could be associated with your portfolio you need to rearrange your strategy.

       Your portfolio is going to perform the way it was structured and built to perform

  1. There is no rebalance plan in place. 
    1.  One of the first things you did when you opened your investment account was to define your portfolios allocations.  You may have set up a portfolio with 80% in stocks and 20% in bonds but now after some market movement that allocation is not exact anymore and the only way to make sure your portfolio is matching your risk tolerance is to keep rebalancing.
  1. You do not have any idea of what you are paying in cost and commission inside your portfolio!
    1. Many fees and costs are not always totally clear for the investor so it is crucial to really understand all fees. As an example a mutual fund could be built up around transaction cost, tax cost, expense ratio and maybe a cash drag.
  1. You do not have an overall lifelong plan around your investments
    1. If you are not sure what the overall plan is around your investments and what your time frame is for your investments, you should sit down with an advisor and restructure and reconfigure your plan so that you know why and how everything ties together.


Now these are some very basic reasons that can help you identify reasons why you and your investment portfolio are not completely aligned.  Your portfolio is going to perform the way it was structured and built to perform but if it isn’t what you are expecting then a change has to be made. Investing and building up your wealth can be very simple and straightforward but it will never be easy.


Written by CreativeNurse Team

2016-30734 10/17