Financial Crisis Management: How to Avoid the Investor’s Dilemma

Financial Crisis Management: How to Avoid the Investor’s Dilemma

financial planning

Don’t Get Snared by the Investors’ Dilemma

Are you watching the financial market decline and worrying about losing the gains you’ve made in your investment portfolio?

You’re not alone. This pandemic and subsequent market crash has made everybody nervous about their financial future. So what are the investing tips with the potential to ride out the market downturns and help you recover what you might lose, and more? How will you gain the confidence to stay on track for financial success?

Some would say it’s picking the best stock. Some will swear it’s timing the market. Others will pat you on the back and soothe you with an introduction to a stock broker who has enjoyed a stellar track record for investing and seems to be a sure bet for the future. And don’t forget financial gurus in the media. They’re online, on stage, and on TV to help people like you, right?

You invest to help ensure you’ll have money to accomplish your life goals, support your family, and realize your dreams. Knowing you have planned for the future can help offer a sense of peace in the present. But instead of bringing peace of mind, investments are often littered with complex and confusing information and hidden fees. Do you enjoy feeling distress, worry, and anxiety? We sure don’t.

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If you can answer “YES” to even one of these questions, you’ve been snared by the Investors’ Dilemma.

  • Will I get high enough returns on my investments?
  • Will I run out of money in retirement?
  • How can I afford college for my children?
  • What will happen if I lose my money in a market crash?
  • How do I make sense of all of the investment information available?
  • Will I have money to care for loved ones?
  • How can I avoid getting bad investment advice and, worse yet paying for it?
  • How can I avoid buying high and selling low?

The human side of investing

As investors, we never overcome our own humanity. On one hand you want your assets to grow so you have enough wealth to meet your personal goals. But without even realizing it, you make decisions based on loyalty, hope, greed, rationalization, and fear - even if they won’t always help you achieve your long-term financial goals. Dalbar studies repeatedly show that investor psychology is the biggest impediment to long-term investing success.

You’ve probably never given the Investors’ Dilemma a thought. In fact, a lot of people don’t even know it exists. So how do you break free and operate outside of this cycle? The first step is becoming aware of it. 

That being said, at Hammond Iles Wealth Advisors we work hard to understand and take precautions to help protect investors like you from unethical investment practices designed to line the pockets of Wall Street at your expense. At Hammond Iles we take our duty to clients and their families and our craft seriously. Every week we uncover something new that impacts investors like you. We’ve read just about every investing book, course, and manual we can get our hands on and there is a lot of unsound advice out there. That’s why we made a commitment to educate investors so you can make more informed choices. 

Excited about learning more? Get started by checking out the Investor Awareness Guide

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About Greg Hammond, CFP®, CPA

Greg Hammond is the chief executive officer of Hammond Iles Wealth Advisors, and co-founder of Planned Giving Strategies®. Greg leads a team of professional financial advisors providing customized wealth management and investment solutions for high-net-worth individuals, families, companies, and charitable organizations across the U.S.