Be actively involved. Even when you find an advisor you trust, don’t be disengaged. Too many investors blindly hand over their hard-earned money to strangers, investment advisors, hedge fund managers and financial planners to make decisions based on their “best interests,” says Karl Kaufman, founder and CEO of financial membership service American Dream Investing in Boca Raton, Florida.
But it’s essential that investors learn how to manage their own investments. “Claiming you don’t have the time or interest in managing your investments can result in mediocre or worse returns,” he says. “The opportunity costs of not investing wisely can mean delayed financial freedom and independence.”
Bottom line, he says: “No one loves your money more than you.”