Ignoring Diversification
Putting all your money into one stock or one type of investment might seem like a good idea, especially if it’s doing well right now. But if that investment takes a hit, your whole pot of money could go down with it.
It’s a bit like putting all your eggs in one basket. If the basket drops, you’re in trouble.
What to do instead:
Spread your money across different types of investments, such as shares, bonds, property funds, and even across different industries or countries. This is called diversifying, and it helps lower your risk and gives you a better chance of steady growth over time.
Want to dive deeper into this? We’ve written a full article explaining how it works.
Read here: Why Diversifying Your Funds Is So Important
Letting Emotions Lead
Markets go up and down. It’s normal. But panicking and selling when things dip or getting greedy during a boom can sabotage your long-term returns.
What to do instead:
Stay calm and stick to your plan. Investing is emotional, but your decisions shouldn’t be. Try to look at the bigger picture and avoid making moves based on fear or hype.
Chasing Quick Wins
A friend tells you about a “hot tip” or the latest trending stock, and suddenly you’re tempted to throw your money at a company you’ve never even heard of. Sound familiar?
Trying to get rich quick or time the market might seem exciting, but it’s a risky game—and more often than not, it ends in losses. The truth is, real investing is slow and steady. It’s not about overnight success.
What to do instead:
Stick to a plan that matches your goals, and build a well-diversified portfolio. Investing isn’t about luck, it’s about patience. It’s not about timing the market; it’s about time in the market. That’s where the real growth happens.
Overlooking Fees and Charges
Even small fees can quietly chip away at your investment returns over time. Many first-time investors don’t realise how much they’re actually paying in annual management fees, transaction costs, or other hidden charges—especially in things like pension funds.
It might not seem like a big deal at first, but over the years, those fees can seriously impact how much you end up with.
What to do instead:
Before you invest, take the time to compare costs. Not all funds charge the same fees, and some are more transparent than others. Knowing what you’re paying means you can make smarter choices and keep more of your money working for you.
If you’re investing in a pension, this is especially important. We break it all down in our article here: Pension Fees and Taxes in Ireland – What Are You Paying?
Avoiding Professional Advice or Tools
Some new investors avoid speaking to professionals because they think it’s only for the wealthy or worry about fees. Others ignore handy tools that could help track, plan, or optimise their investments.
What to do instead:
Getting help doesn’t mean giving up control, it means making informed choices. Financial advisors can help match investments to your goals, explain risk in plain English, and ensure you’re on the right track. And with the right tools, you can monitor performance, set alerts, and adjust with confidence.
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