DIY Investment – The Hidden Traps

It’s easy to become a DIY investor, you might buy a few shares, buy an investment property or start a self managed super fund. But what are the common traps that DIY investors fall into? Here are a few examples we see regularly:

Not understanding the tax implications
What you do today can have short and long term tax implications. We have seen this cost people thousands and could have been avoided by talking to an adviser that understands the implications. Avoid the costly mistakes with a conversation!

Not having focus
The guidance and direction that the planning process provides is more valuable than the Rate of Return as it will help you to get focus on what will get you to the outcomes that you want. That is where the true value of financial advice lies.

Following the herd
For many, investment decisions are based on their emotions at the time. Following the herd or making snap decisions based on emotion is a recipe for disaster. It’s really important to set your own goals and make rational and factual based decisions where possible.

Over Commitment
People may decide to invest in a property which results in a big loan. We often see repayments place unnecessary pressure on family finances or compromises lifestyle.

Avoid the costly mistakes just by having a conversation with an adviser.

What should you do now?

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If you would like to discuss your investing options, we offer a 1 hour no obligation, complimentary consultation with one of our advisers to discuss your situation. Contact us to arrange a time.

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Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686).