Whenever an individual tries to acquire a new skill set, he/she is bound to make mistakes. According to Richard Cayne of Tokyos leading investment firm, investment too is an art that only comes with …
Whenever an individual tries to acquire a new skill set, he/she is bound to make mistakes. According to Richard Cayne of Tokyos leading investment firm, investment too is an art that only comes with practice. The art of investment entails the allocation of money in such a resourceful manner that it brings in profitable returns in the future. And, while most individuals stepping into the arena of making investments do equip themselves with knowledge, there are a few common mistakes they inevitably end up making.
According to Richard Cayne in Tokyo, one of the most common rookie mistakes in investment is to head out without any clear goals. Setting clear goals is indispensable to achieving future financial success. By recognizing your goals, you will not only be able to establish a clear plan of action, but also review the same for any revisions in the future. Richard Cayne in Tokyo advises asking yourself preliminary questions such as why do you wish to save/invest, how much do you wish to earn, how much do you necessarily have to save, etc.
An extension of the first error, Richard Cayne of Tokyos leading investment firm mentions the second mistake to be moving without appropriate planning. It is critical to have a proper financial plan in place before you go ahead and invest your hard earned money. Richard Cayne of Tokyo advises formulating a plan that answers questions like when to invest, how much to invest, where to invest and what to expect. Having an appropriate financial plan ensures to keep you on track with your investment goals as well as aspirations.
Richard Cayne of Tokyo warns against investing all your money in one type of investment. He mentions that this is one of the most common mistakes made by a rookie investor, which can place your entire portfolio in jeopardy. While most investors starting out would love to park all their money in the highest paying vehicle, the biggest downfall of such an amateur decision would be losing as heavily when the market goes negative. Balance is the key to a high performing portfolio, says Richard Cayne of Tokyos leading investment firm. He further adds that though every individual might think he/she is in complete control of their finances, consulting a financial advisor comes highly recommended. No matter how new or far along you are on your financial path, taking the help of a professional consultant is exactly what can make a difference between an average portfolio and one that outperforms time and again.