Valley First

Investment decisions you should rethink right now

Here are some investment decisions you might want to rethink


Every day, we are inundated by a myriad of choices to make. Small choices, big choices, important choices trivial choices. This overflow of decisions we have to make leads to what experts are calling “choice overload” or “decision paralysis.”

What tends to happen in this ecosystem is when you are presented with too many choices, your ability to make the best choice actually decreases. When the stakes are trivial, like what movie to watch on Netflix, so is the outcome. But when it comes to managing your money…

Your potential to build wealth is also driven by the choices you make.

If you are creating your first investment plan, or if things have changed in your life or in the economy, here are some decisions you might want to rethink.

Because your financial future does not depend on Netflix’s algorithm.

Decision: “I’ll just ‘set and forget’ my investment portfolio.”

Rethink it:
You know there will be twitches in return rates, so you're not alarmed by small fluctuations up and down on your investment statements.

Still, it’s a good idea to look back over the year for significant shifts, and ask your financial advisor to help you evaluate any unusual trends in your portfolio.

Decision: “If I copy my friend’s investment scheme, I will match their success!”

Rethink it:
Your family, neighbours, and social media strangers will tell you about their “winning” financial philosophies (and usually neglect to mention the flops). Is it worth following their footsteps?

Maybe. But bring their ideas to a qualified financial advisor to help you evaluate whether you can replicate their results when applied to your own circumstances.

Good intentions don’t always turn into good investments.

Decision: “I can just stockpile money in my regular savings accounts.”

Rethink it:
It is comforting (and smart) to have emergency cash at hand – like a ship in a harbor during a storm; however, you are not taking advantage of the wealth that is in the ocean.

The interest rate of a regular savings account is not going to increase your wealth.

A better option is to keep enough cash in an easy-to-access account to cover two months expenses, and deposit the rest in terms, funds, and other investments that earn better interest.

Decision: “I will take a gamble on getting a high return.”

Rethink it:
You should feel secure about your investment plan. If the amount of risk you have doesn’t match your tolerance, one or more products may be misaligned with your needs.

Many people think there is a secret to timing the market, when in reality, emotional responses can lead to bad decisions. Instead of speculating (and hoping for the best), choose a mix of investments from solid businesses that strike the right balance with your temperament.

QUICK TIP: Don’t have a financial plan in place yet? That’s okay! But let’s change that. Book an appointment with a financial advisor and get started.

Decision: “If I sacrifice social responsibility I’ll get a better return.”

Rethink it:
These days, you can align your ethics and spending without sacrificing your wealth potential.

Investing into businesses that match your environmental, social and governance (ESG) perspective show consistent return.

Talk to a financial advisor who can access ethical options from the best companies around the globe.

Decision: “I will put all my investment apples in the best-looking basket.”

Rethink it:
It’s tempting to go all-in on an investment product that seems to be paying off; however, markets are volatile and things can go bad quickly.

Smart advisors will help you diversify your assets so that your portfolio includes many investments that do not move in the same direction.

Find the right guide

Every decision you make has an impact on your bottom line. That’s the thrill of investing. But some of these choices could be costing you more than they’re worth.

When everything is an option, when the sea of choices stretches to the horizon, it can be overwhelming to make sense of all the information and to make the best decision possible.

Our team of financial advisors are experts who are passionate about guiding you through the minefield of false leads and misinformation so you can make the decision that’s best for you.

If you want more simple advice in order to make (or rethink) these investment decisions, talk to a financial advisor at a branch near you.

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Whether you’re looking for more information, or you’d like to let us know how we can serve you, you’ll find our contact information here.

We encourage you to visit an investment advisor at any of our branches for more advice on how to reach your goals!