How To Avoid The Biggest Investing Mistakes

Being specific is important when it comes to setting goals.

New investors often think about potential returns before figuring out what they really want, and that is a big mistake, according to Josh Brown, CEO of Ritholtz Wealth Management.

"Once you start defining your goals, an interesting thing happens, you realize that you don't need to take the maximum amount of risks to hit them," Brown said.

Then, with a specific goal in mind, you can work your way backward and come up with a plan to get there. Brown says the goal can be as specific as someone wanting to be able to afford a house in the mountains in 10 years. That will give you an amount and a time frame to design your portfolio around.

Check out this video to learn the other mistakes Brown said investors make and what he says you should do instead.

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How To Avoid The Biggest Investing Mistakes

[zeus_bets]

The biggest investing mistake is not starting soon enough

[mindibear]

It’s hard to set a definitive goal because in 10 years that 300k house you wanted to buy now costs 450k.

[FinancialShinanigan]

It's better to save and invest more than to realize you didn't do enough.

[princewembo]

I realise that no one will truly tell you how to invest

[JonathanSorunke]

Planning is the most important aspect of finances! Great video!

[NathalieLazo]

Dear lovely person that's reading this, we may not know each other but I wish you all the best in life! ✨
I believe in you! Love - Nat ❤️

[Seku]

Can someone explain what he meant by “working backwards”? Thank you.

[MrSohildeep]

Just remember everything not always goes with the plan, you could be saving for something but have to spend on some emergency. Always have diversified portfolio with assets ranging from highest risk as lowest % to assets with lowest risk as maximum % of portfolio. Just investing is not sufficient, also find ways to generate some extra income to meet the goals. Stop complicating things, if you are getting paid less at current job but some other company is paying more for same work? Go for it. Learn about the tax-free savings accounts, writing off expenses to reduce taxes, swapping things for profits. If you are master each of it, you can become millionaire in next 10 years.

[PG-tcos]

Planning for the most expensive priority things that you must have in life such as A House and Retirement.

[naturalLin]

Good thing I went all in crypto back in 2013

[lindawayland]

Irrespective of how bad these markets get, some Investors will still make profits in this crash. The only challenge is figuring it out if it's through Holding or short-selling.

[primehelper]

The alternative is NOT following advice from a sponsored acorns ad.

[drewconway]

He doesn’t look like the type of person I would be comfortable investing my money with.

[gebhardt]

I don't care to set goals first. I'll just save and invest in the SnP500 consistently with 50% of my take-home pay and see what happens. That's just me. I'll be fine.

[KP-hiom]

I guess you can never go wrong with a plan to retire debt free with a paid off house and a bunch of 💰 invested.

[zomils]

You dont need a goal to invest, having a goal for your investment actually makes you more likely to sell when the stock market is down due to fear of not reaching your goal. Also inflation isn’t tangible so if your buying a car in a few years then the car rrp maybe the same or even less, a house only goes up due to higher demand without any increase in supply. Yes inflation in the long run will effect things but its not instant like cashback is..

[dahe]

So this financial advisor says the biggest mistake people make is not handing their money over to financial advisors? Got it.

[bondemupazanyini]

BS advice. Just invest. I have no plan I am just making $$ and will figure it out later. As long as it’s not in checking account.

[didine]

Watch out, this is a promotional video for Acorn, take it with a grain of salt

[theoverlord]

What am I trying to do ? Make money you #*’@ . As much as possible, as fast as possible . Duh. Capisci ?