Overestimate investment returns

emonseo21

% of managers cite this mistake with retirement and the fact is that, by nature, we are not very good with numbers, nor with time.

What I have told about the scenarios we did for a simple reason, people have an optimistic planning bias .

That is to say, we make milkmaid stories in our heads too quickly about how much that new investment we are going to bet on will give us.

Therefore, it is advisable again to put the brakes on the investment return forecasts and be conservative with them.

If it then gives us more,   UK Email List  great, but let's let the stories continue to belong to the realm of fantasy.



Be very conservative or very aggressive in those investments
Woman balancing a board on a roller, which has coins on one end and her finger on the other balancing
Virtue, especially when it comes to investing, often walks through the boring center of things.

However, of the two mistakes mentioned in the title, being more conservative with our investments occurs more often (% of advisors mention it) than being too aggressive (cited by %).

Investing is balancing all the time between risk and profitability. If you want more of the latter, you have to take on more of the former .

Nothing that most of us who frequent this website don't know, but, apparently, the greatest danger of the two is deviating from the middle point towards excessive caution.

Have unrealistic expectations of return on investment
Stacks of coins arranged in increasing order, with a small tree on top of each of them
With % , this error appears again due to this excess of optimism. If it already appeared when calibrating individual investments, it also appears when we think about the overall amount we will obtain.

According to Natixis data, investors expect, in view of their retirement, that their average returns will be %... plus inflation.

Ahem, no, that's not the real world .

Let's see, it's not impossible, but it won't be usual. The North American S&P index has had a historical return of % plus inflation. Meanwhile, our IBEX scores % annual profits or % average annual profitability with dividends.

So that we get an idea of ​​the situation and temper those unrealistic expectations.