What You Can Learn from Millionaires’ Investment Mistakes

One might think that if anyone would be savvy about financial investments, it would be millionaires. After all, they can afford to consult some of the best financial advisors in the world, right? Not necessarily true! The deVere group recently surveyed 880 investors in the world with more than $1.5 million of investable assets and found that millionaires reported making some extremely common investment mistakes:

  1. Failure to Diversify

The old adage of not putting all your eggs in one basket is extremely true when it comes to investing. If you put all  your money in one stock and that one stock plummets, you’ve lost everything. But if you diversify well enough, you will have other investments to fall back on and won’t be completely ruined by one investment taking a hit.

  1. Investing Without a Plan

If you don’t know much about investing other than “Buy Low, Sell High,” definitely seek the guidance of an experienced and reputable investment counselor. They can develop an investment plan tailored to your specific needs and financial goals.

  1. Making Emotional Decisions

Having the help of an investment counselor will help with this mistake. It’s commonly said that investing in the stock market is generally motivated 90% by emotion and 10% by reason. After all, when faced with potentially losing a great deal of money, people are likely going to make snap decisions to avoid losing it all. But an investment counselor can help you avoid making emotionally-charged decisions that could cost you money in the long run.

  1. Not Regularly Reviewing Their Portfolio

If you have investments, you need to keep an eye on them to make sure everything is performing satisfactorily. The last thing you want to do is take a look at your portfolio and realize you’re down a bunch of money because you weren’t paying attention.

  1. Focusing Too Much on an Investment’s Past Returns

Plain and simple, you have to remember that just because an investment performed a certain way in the past doesn’t necessarily guarantee it will perform the same way in the future.

investing for the future

More Single Women Investing in Real Estate

Home ownership has long been tied to being part of the “American Dream,” but after the housing market collapse of 2008, many Americans are no longer seeing real estate as a good investment opportunity. According to the U.S. Census Bureau, only 65% of Americans own their homes, the lowest it has been since 1995, and only 36.5% of people under 35 own their homes, the lowest it has been in over 30 years. A survey conducted by the Washington Post and the Miller Center has found that while most people still believe in the “American Dream,” only 61% of them view owning a home an essential part of it.

More single women are investing in real estate.

But there is one growing demographic that still sees real estate as a worthy investment — single women. Single women currently represent 16% of American homebuyers whereas single men only represent 9%. Many women are now putting marriage off until later in life and see no reason why they should wait to make a move that makes good financial sense for them now. When the New York Daily News interviewed several single women who own their apartments, a common theme was that their mortgage payments were less than what they were paying in rent and it made no sense to be paying upwards of $3,000 per month on something they don’t actually own.

One reason many single women are reluctant to buy property is that they don’t want to be stuck owning a property they might outgrow if they get married and have children. But other single women see the potential of turning their homes into rental properties if they eventually end up needing more space.

The rise in single female homeowners may be partially attributed to a slowly-shrinking wage gap between men and women. On a national level, American women still only earn an average of 79.5 cents for every dollar their male counterparts earn, but the gap is shrinking among women aged 25-44, who are now earning an average of 81 cents for every dollar. Therefore, younger women are starting to have more money than before to invest.