3 Investing Regrets You Should Avoid
While we all suffer from occasional regrets, a new survey shows that America is dealing with some pretty serious financial ones. BankRate’s survey found that around only 20 percent of Americans have been able to avoid financial regret.
There is a silver lining to this grey cloud, however. The investing regrets that most people dealt with had some common sources and solutions. Read on to find out three of the top investing regrets, and how to avoid them.
Not Investing For Retirement Early.
According to the survey, one of the top investing regrets for one-fifth of America is not investing for retirement early enough. While it’s tempting to shelve retirement investing until you’re in a better place, you should realize you’re missing out on compound interest in the meantime. While the rest of America is playing an expensive game of retirement catch-up, you should take advantage of time by investing as early as possible.
Not Having an Emergency Fund.
A number of Americans also had investing regrets because they didn’t have an Emergency Fund in place. Although investing should be a top priority for your financial health, you don’t want your financial plan to derail because of sudden expenses. That’s why having 6-8 months of living expenses stowed away in your savings account is a smart goal.
You can’t predict emergencies, but you can plan for them. This fund can serve as a safety net when your roof starts leaking or you have to find a new job; preventing you from withdrawing from your investments at an inopportune time or eating your nest egg too early.
Overpaying for your home.
Another investing regret is viewing your home in the same light as your investing portfolio. You should realize that a home is a largely illiquid and concentrated investment. Although owning a home is a fine goal, you should make sure it fits with your financial needs and goals.
Learn more about the investing regrets you should avoid
At LexION Capital, we craft a plan that’s as individual as you are. We custom tailor your plan to your unique goals and needs, so you can be financially worry-free. If you’d like to learn more about our bespoke approach to investing, let’s have a conversation.