The 10 Biggest Investment Mistakes and How to Dodge Them – Eric Felsenfeld’s Gui

1. Top 10 Investment Mistakes and How to Avoid Them – Eric Felsenfeld Investing is one of the most powerful ways to build wealth, but it’s also easy to make mistakes that can cost you dearly. Financial expert Eric Felsenfeld emphasizes the importance of avoiding common investment pitfalls to maximize returns and minimize risks. Below, we explore the top 10 investment mistakes and how to steer clear of them. 1. Lack of a Clear Investment Plan One of the biggest mistakes investors make is jumping into the market without a plan. A well-defined strategy helps you stay focused and prevents emotional decision-making. Eric Felsenfeld advises setting clear goals, risk tolerance, and a timeline before investing. How to Avoid It: ● Define your financial goals (e.g., retirement, home purchase, education). ● Select an investment approach that matches your comfort level with risk. ● Regularly review and adjust your plan. 2. Trying to Time the Market

2. Many investors attempt to buy low and sell high, but even professionals struggle with market timing. Missing just a few days of a bull run can significantly impact returns. How to Avoid It: ● Focus on long-term investing rather than short-term speculation. ● Use dollar-cost averaging to invest consistently over time. ● Stay invested through market fluctuations. 3. Ignoring Diversification Putting all your money into one stock or sector can lead to massive losses. Diversification spreads risk and increases the chances of stable returns. How to Avoid It: ● Invest across different asset classes (stocks, bonds, real estate, etc.). ● Diversify within each asset class (e.g., tech, healthcare, energy). ● Consider index funds or ETFs for broad exposure. 4. Following Investment Hype Chasing trending stocks or cryptocurrencies without proper research can be disastrous. Just because an asset is popular doesn’t mean it’s a good investment. How to Avoid It: ● Research investments thoroughly before buying. ● Stick to your investment strategy, not social media trends. ● Consult with a financial advisor like Eric Felsenfeld for professional guidance. 5. Letting Emotions Drive Decisions Fear and greed often lead to poor investment choices, such as panic selling during market dips or overinvesting during bull markets. How to Avoid It:

3. ● Set automatic stop-loss and take-profit levels. ● Avoid checking your portfolio too frequently. ● Stay disciplined with your investment strategy. 6. Not Understanding Fees and Taxes Unnecessary fees and high tax liabilities can significantly reduce your investment gains over time. Many investors overlook the costs associated with brokerage accounts, mutual funds, and financial advisors. How to Avoid It: ● Choose low-cost index funds or ETFs. ● Understand the tax implications of each investment. ● Work with a knowledgeable advisor like Eric Felsenfeld to optimize tax efficiency. 7. Failing to Rebalance Your Portfolio As market conditions change, the proportion of assets in your portfolio may drift from your original investment strategy, increasing risk exposure. How to Avoid It: ● Rebalance your portfolio at least once a year. ● Adjust investments based on market conditions and personal goals. ● Ensure your risk exposure remains within acceptable limits. 8. Overlooking Inflation Many investors underestimate the impact of inflation on their savings. Holding too much cash or investing only in low-yield assets can erode purchasing power over time. How to Avoid It: ● Invest in assets that outpace inflation (e.g., stocks, real estate).

4. ● Consider inflation-protected securities (TIPS). ● Regularly review your investment strategy with a professional like Eric Felsenfeld. 9. Taking on Too Much (or Too Little) Risk Some investors take excessive risks chasing high returns, while others are too conservative and miss out on potential gains. How to Avoid It: ● Assess your risk tolerance based on your age, income, and goals. ● Maintain a balanced portfolio with a mix of riskier and safer assets. ● Reevaluate your risk strategy periodically. 10. Not Seeking Professional Advice Many investors believe they can manage their portfolios alone, but expert guidance can make a significant difference in long-term success. How to Avoid It: ● Work with a trusted financial advisor like Eric Felsenfeld. ● Seek professional insights on tax strategies, estate planning, and investment diversification. ● Stay informed about changing market trends and regulations. Final Thoughts Investing wisely requires patience, discipline, and knowledge. Avoiding these common mistakes can help you build a robust financial future. If you’re unsure about your investment strategy, seeking advice from an expert like Eric Felsenfeld can ensure you’re on the right path.