We’re told to use common sense when making decisions, yet often we still do otherwise. Today’s podcast will highlight several areas where people tend to go outside of the common sense and why.
(Click the featured times below to jump forward in the episode)
At first glance, you may think these statements make sense. But when you consider how people actually behave with their money, it might not follow suit. While we all agree these things are common sense, many times we don’t actually abide by them. Why is that?
You may have heard the phrase, “Buy low and sell high.” Is that what people actually do though? Sometimes our emotions get in the way and we get tripped up my greed or fear. Remember, you have to sell high in order to buy low.
When it comes to taxes, many of us want to pay what’s fair but not a penny more. While hurrying to prepare taxes every year, we may overlook the tax strategy for the future. Do you understand what kind of taxes you’ll be paying in the future?
If we aim to keep costs low with our investments, how do we still end up with higher fees that we intended? Where are they hidden and how much do they cost? You may be shocked to know what the fees really are on something like a variable annuity. Make sure you are getting the benefits you want, because you’re paying for it.
Finally, are you really diversified in your portfolio? We’re taught to avoid putting all of our eggs in the same basket, but many of us have portfolios that are far from diversified. Understand what you have and how it fits into your financial plan.
Listen to the entire episode or click on the timestamps below to hear more on a specific statement.
[0:53] – “Buy low and sell high.”
[3:37] – Don’t pay more in taxes than you have to.
[6:06] – Keep costs low within your investments.
[8:33] – “Don’t put all of your eggs in one basket.”
[10:22] – Market timing is virtually impossible.
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