Sunday, December 21, 2008

What's Wrong With Mistakes, Learn from Them!

From about 2003 till early 2008, there was a feeling of invincibility for all investors. No matter what the investors did, they made lots of money. No mistake seemed to matter. Whether it was a the wrong fund, a heavy sector concentration, or a disfigured asset allocation, it all worked out.

But times have changed now. Errors in financial judgement can carry a heavy cost today. While what was done in the past cannot be undone fully, some of the ill-effects of financial mistakes can be corrected.

So it's time to ask yourself the following questions?
  • Is my Fund selection aligned to my financial goals?
  • Am I properly diversified?
  • Do I have an asset allocation strategy in place?

Very basic questions. But once you have figured out the questions, the solution is on the way.

Every problem has a solution has been heard so many times. How about the following:

Solutions are fun, but to get one, you need a problem. So what's wrong with problems?

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