12 Obstacles to Investing Success

When it comes to investing for your future, the basics hold true. Here are some things to overcome or avoid as you sock away your hard-earned cash.

1. Starting Late

Compounding over time is powerful, making early investments, no matter how small, is critically important when it comes to investing success.

2. Underestimating Time

Ask any older person how quickly time passes. Don't put off to tomorrow what you can start today.

3. Overrreacting

Those with long-term horizons who stay the course may weather the volatile markets this year.

4. Under-reacting

"Buy and hold" should not apply to every investing decision. If your investments have poor long-term prospects or no longer fit your strategy, consider selling them.

5. Investing Too Aggressively

If you're in or near retirement, you may not have the time to recover from down markets. Invest accordingly.

6. Investing Too Conservatively

With enough time you may overcome market downturns, so invest for growth when you have time.

7. Paying Too Much

High investment fees and charges detract from net earnings, so make sure your returns are worth the cost.

8. Staying Too Loyal

Loyal employees may like to own their employers' stocks, but too much of a good thing is a bad thing. Diversify.*

9. Duplicating Efforts

Know how target-date and balanced mutual funds** affect your asset allocation mix.

10. Following the Herd

Jumping late on a hot investment's bandwagon can become a costly investing mistake.

11. Timing the Market

Even the professionals can't do it, so don't try.

12. Avoiding Help

Talk to a financial professional for help with your investing strategy.

*Diversification cannot eliminate the risk of investment losses. Past performance won't guarantee future results. An investment in stocks or mutual funds can result in a loss of principal.

**Investors should read the prospectus and consider the investment objectives, risks, charges, and expenses of the fund before investing. Because mutual fund values fluctuate, redeemed shares may be worth more or less than their investment. Past performance won't guarantee future results.