Broker Check

Don’t Let Your Confidence or Resources Fool You

| October 19, 2016
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Financial Planning

Most people act on their feelings.  For example when you are happy you might laugh, smile and want to do things that you enjoy.  This acting upon feelings doesn’t change even when it is applied to the financial world when someone is planning for their financial future.  Many people believe that their financial future is brighter than the average person. Due to there being many resources and avenues in which you can find investment information and strategies, it’s hard not to get caught up with so much self-confidence and optimism that you make some fairly impaired decisions.

The Trick of Over Confidence

When people have more information they tend to feel as if they have more confidence in taking the next steps towards making investment decisions.  This point is made very clear with many new college graduates.  They finish school thinking that they have all of the information they need to join their field of study, but the reality is that they often lack the know-how and make mistakes along the way. 

Here is also an example of being over confident when it comes to big time companies: Many merger and acquisition contracts show that there is a great level of optimism in the evaluating of the two opportunities.  Companies in this case believe that it is in the best interest to join together or merge as a means of making more money for the future.  Though this can work, more often than not the companies will see their stock decline.

You can find examples of both experienced business people and inexperienced people making some costly mistakes when it comes to making important life decisions because they are over confident in the information and resources that they have been given.   So don’t be tricked into thinking that you know how to invest properly when you haven’t experienced the finance world itself, personally.

The Treat of Using a Professional

Instead of trusting in yourself to make financial decisions solo, it is best to always seek the advice of professionals who not only have the knowledge but also the experience to advise wise investment making.  Let’s note that there is always risk involved when it comes to investments and growing your money, but using a financial advisor who has been around the block a few times understands the patterns and economics far better than the average Joe.  Let’s not forget to mention the years of educational knowledge, client portfolios or even advanced certifications they study, work and obtain.

It is a treat to have an experienced financial investor evaluate your portfolio and make improvements.  Or if you haven’t started investing and you would like to get started, find a reputable finance company that can show you the ropes and give you the guidance you need to make smart decisions about where your money should go.

There are many self-help resources out there that can help you understand the financial and investment world. Don’t be fooled by the pretty pictures and potentially skewed stats that you can find anywhere online.  We all know it is far better to receive the treat of quality financial advising than the trick of thinking we can do it ourselves.

Should you want to have that financial advisor on your side to assist you or take your financial portfolio through to your retirement, contact GPS with any questions or how to get started with the navigation of your financial journey.

 

 

 

Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. GPS Wealth Management and Securities America are separate companies. Securities America and its representatives do not provide tax or legal advice; therefore it is important to coordinate with your tax or legal advisor regarding your specific situation.  The opinions and forecasts expressed are those of the author, and may not actually come to pass. This information is subject to change at any time, based on market and other conditions and should not be construed as a recommendation of any specific security or investment plan. Past performance does not guarantee future results.

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