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| 1. |
Failure to set goals |
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Most people only have a vague idea of what they want. For example save for a house, college or retirement. You should set concrete goals such as save $30,000 in five years for a down payment on a house. Only then can you calculate to see how much you must save each month and if the goal is obtainable. Once a plan is in place your next step is to stick to it.
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| 2. |
Failure to prepare wills and other documents |
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A lack of a will or other documents stating what your wishes are is important in order to carry out your desires. If not your estate could be tied up in costly legal procedures, which will erode its value and what remains may not go where you wanted it.
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| 3. |
Failure to examine investments close enough |
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Look carefully into where you put your money. Many brokers will recommend house accounts that pay them a higher commission than what might actually be best for you. Do your homework. Also review where your money is and if could be moved to another investment that could provide you with similar security but at a higher rate of return. For example, moving money from a savings account to Treasury bills.
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| 4. |
Failure to take the individual into account |
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Make sure that the your plan fits your situation. For example, are you saving short term for college or a home or long term for retirement? Your investment plan will need to change over time as well. At the least you should give it an annual tune-up to make sure your portfolio is in line with your goals.
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