Reader alert: Don’t worry about the title. This is a no-shame, no-blame, no-guilt article. Read on without worry.
If you are not completely satisfied with your investment progress and suspect it can be better, you’re probably right. Here are the 8 most common investor hurdles we see. And they all can be completely overcome!
You’re not alone
Most investors we encounter complain of several of the following situations that prevent them from building a portfolio that fully reflects their financial situation and gives their hard-earned money the priority it deserves.
Fortunately it doesn’t have to stay that way. There’s professional help available. Registered Investment Advisors (like Osbon Capital) are a special kind of advisor who can help you overcome all these problems.
“I’m just not that kind of person”
Few people are. Investing takes specialized knowledge, analytical skills, patience, self-awareness and focus. RIAs devote their entire careers to helping families get through the confusing financial jungle.
“I don’t have the time”
Investing’s too important to leave for tomorrow, and too complicated to do well in “spare time.” Enlist the help of an RIA who focuses on nothing else 24/7.
“I can’t find anyone I trust”
Trust is critical. Start by understanding that many financial advisors work on commission and face no prohibition on conflicts of interest. Not the case with RIAs, who bear a legal responsibility to act in your best interest every day, in every way. That’s different from the brokers (JPMorgan, UBS, etc.) who are paid at the point of purchase to sell you the financial product du jour.
“I can’t find anyone who understands me”
Some advisors prefer talking over listening. Interview RIAs until you find one who listens.
“I don’t know what my investment goals are”
Don’t start with money. Think about your life goals. What do you want to do? Whom do you want to help? How do you want to be remembered? An RIA can help you translate these into investment goals.
“I am afraid of making a mistake”
The biggest mistakes most investors make are not technical, they’re behavioral – panic, speculating, overconfidence, greed, chasing fads, etc. An RIA acts as a crucial buffer between your emotions and your money.
“Investing scares the heck out of me, I can’t stand losing money”
This “loss aversion” bias can paralyze you, but to make money you need to be invested. An RIA will help you stay focused on long-term goals, not short-term volatility.
“Investing is an unfair, fixed game against me”
It’s not necessarily fixed, but investing surely favors professionals with more experience, better information and more sophisticated tools. Don’t try to beat Serena Williams at her own game. Call in a pro for help.
If you’re not working with an RIA, now may be a good time to talk to one. While investing can be intimidating, and a tiresome distraction from your real life, for us it is fascinating and fun. We’d love to be a help to you. Feel free to drop a line.
John Osbon – josbon@osboncapital.com
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