In our industry it feels very common for clients to believe the single biggest threat to their personal financial success is investment performance.  CNBC recently published an article highlighting the 10 most common personal finance mistakes.  Interestingly, investment performance barely scores a mention.  On the list below, numbers 6 and 7 touch on the dangers of buying stocks based on brand and investing too conservatively.  Both investment mistakes highlight the emotional nature of investments for many clients. I think it’s important for clients to understand these risks and recognize the importance of disciplined, professional investment management for their accounts.

A link to the full article is here:

The top ten list includes:

  1. Overpaying for Home Insurance
  2. Putting Off Buying Life or Health Insurance
  3. Underestimating Health-Care Costs
  4. Passing up Tax Breaks
  5. Paying Late Fees
  6. Buying Stocks by Their Brand
  7. Investing Too Conservatively
  8. Paying Retail
  9. Leaving Valuables Uninsured
  10. Not Checking Your Credit Score