Top Wealth Management Mistakes to Avoid

Even the most careful investors can stumble into common pitfalls when managing wealth. In addition to partnering with seasoned experts who set the standard for effective wealth management, it's helpful to know the biggest mistakes to avoid.

To help you build a secure financial future, here's our list of the top five wealth management mistakes to avoid.

1. Failing to Set Clear Goals

Without a defined plan, how do you know if you're making progress toward achieving your long-term needs? No matter your financial goals, whether building a college fund, investing in property, or saving for retirement, specific goals give you direction and purpose.

To avoid this pitfall, outline your short-, mid-, and long-term financial objectives. Then, create a tailored strategy for reaching them.

Not sure how to create a tailored financial plan? That's what we do best at Shared Vision Wealth. Connect with us to learn more.

2. Ignoring Diversification

What's the cornerstone of any smart wealth management plan? A diverse portfolio. If you only invest in a single stock or asset, you leave yourself exposed to unnecessary risk. Without diversification, your entire financial future could be jeopardized.

To avoid this mistake, spread your investments across a variety of asset types, such as:

• Bonds
• Real estate
• Stocks

While investing is not without risk and diversification can’t guarantee against a loss, diversifying can help you better balance risk with reward, paving the way for growth over time.

3. Neglecting Regular Portfolio Reviews

Many people have a "set it and forget it" mentality when it comes to their portfolios. Don't be one of them! The market is constantly changing; that means your portfolio must be regularly reviewed and updated if needed to reflect any shifts. Failing to do so can lead to missed opportunities and holding on to underperforming assets for far too long.

If you're just starting your wealth management journey, starting with semi-annual portfolio reviews may be a good idea. Once you're more established, an annual review may be sufficient. Your wealth management advisor can help set an ideal review schedule for the two of you to follow.

4. Overlooking Tax Implications

Another critical wealth management mistake is overlooking the tax implications of your financial decisions. For example, let's say you sold an asset. Now you could be looking at a hefty capital gains tax. Or maybe you're not utilizing tax-advantaged accounts like IRAs and 401(k)s, which could mean higher tax bills.

Because you're not meant to be a tax pro, it's best to rely on the expertise of your wealth management firm, like Shared Vision Wealth. We can implement a number of tax-efficient investment strategies that minimize your tax liability

5. Not Planning for Retirement Early Enough

Retiring requires a substantial nest egg, and putting off saving could leave you in a bit of a financial pickle. The earlier you start saving for retirement, the more time your investments have to grow through compounding.

Start planning for retirement as soon as possible, even if that means small contributions for now. Over time, those contributions have the potential to grow significantly.

Acting in Your Best Interest

Here at Shared Vision Wealth, we act as your fiduciary. That means we are legally bound to act in your best interests. Our tailored wealth management solutions can help you avoid common, sometimes costly, mistakes and maximize your financial potential. Get the personalized financial assistance you deserve – connect with us today.