The 7 Mistakes That Investors Keep on Making

As you near retirement, you can’t afford to make any of these all-too-common investment blunders.

(Image credit: Getty Images)

The dot-com crash in 2000. The 9/11 terrorist attacks in 2001. The collapse of the housing market in 2008. And now the coronavirus pandemic of 2020.

Over the past two decades, these events — which had huge financial, political and societal repercussions — have all been labeled “black swans.”

I suppose you could draw some comfort from the thought that each of these crises was considered so random, so rare and so difficult to predict that no one saw them coming — so how could you? But I really hope you don’t. Because for investors — especially those who are close to retiring — that’s some dangerous thinking.

There is always something coming.

The events that rock the U.S. and global economies may look a little different every time, but stock market volatility is normal. It’s something we always should be aware of and prepare for. Yet, I see investors make these same mistakes time and time again.

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC (opens in new tab) or with FINRA (opens in new tab).

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Richard W. Paul, CFP, RFC, Investment Adviser
President, Richard Paul and Associates, LLC

Richard W. Paul is the president of Richard W. Paul & Associates, LLC (opens in new tab), and the author of "The Baby Boomers' Retirement Survival Guide: How to Navigate Through the Turbulent Times Ahead." He holds life and health insurance licenses in Michigan and Florida and is a Certified Financial Planner, Registered Financial Consultant, Investment Adviser Representative and insurance professional.