Broker Check

Practical Planning Tip: 7 Mistakes Affluent Investors Make - Mistake # 3

May 17, 2024

We’re going to continue our discussion on mistakes that affluent investors make.

Today’s mistake is that Having more control does not necessarily lead to better performance: Based on years of experience, I’ve noticed that my least successful clients are generally the ones that are always adjusting their strategy. This can be frequently modifying their allocation, tactically rebalancing, actively trading, and more. In Yiddish we call this “to patchke” which means to inexpertly tinker with something.


Just leaving things alone is not in everyone’s DNA, especially for investors who implemented a hands-on approach in their professional life.


Unfortunately, constantly tweaking one’s investment portfolio is almost always the wrong decision. A far better approach is to clearly define your financial goals, outline the parameters for how you want your assets managed, and then let professionals handle the day-to-day management. This will help minimize the urge to tinker with your investments, an action that may derail you from achieving your financial objectives.


Tomorrow I will discuss the fourth mistake many affluent investors make.



You can WATCH the full video here.