Pure’s Principal, Marc Horner, CFP®, reveals some of the most expensive investing mistakes and teaches you how to avoid making them yourself.
Transcript
There’s no shortage of people online telling you what to do with your money. But sometimes the real wisdom isn’t about what you should do – it’s about what you shouldn’t do. Today we’re talking about some of the most expensive investing mistakes we see and teaching you how to avoid making them yourself.
One mistake we’re constantly seeing in the age of fin-fluencers is trying to “time the market.” This is an investing strategy that attempts to predict stock price trends and profit from them. The problem is that making those predictions accurately and consistently is difficult, and maybe impossible.
Even professional investors have spotty records in this area, and studies comparing the performance of actively and passively managed funds prove it. For instance, more than half of active funds underperformed their sector average over five years, while only 40% of passive funds underperformed.1 The takeaway is that accepting market volatility can be more profitable than trying to profit from it.
Avoid this mistake by investing consistently every month, whether the market is strong or weak. Emotional investing can derail anyone’s plan, but knowing how to spot potential mistakes can help you stop them before they become a problem. If you’d like to learn more, check out our free emotionless investing guide after the video.
The second mistake that can be extremely costly is skipping the research. Making investing decisions based on limited information can be dangerous, especially if you’re picking stocks. Fund-based investing strategies are less research-intensive, but you still should understand what you’re buying and how you can expect it to perform.1
Avoid this mistake by investing in yourself. Spend time educating yourself and researching securities or investing strategies. At Pure Financial Advisors, we have countless educational resources like white papers, guides, and videos that you can access at no cost just by visiting our website – it’s a great place to start. The bottom line is to ask questions and seek answers because the more time you put in, the better investor you’ll be.
Finally, that brings us to our biggest mistake – not investing at all. According to the FDIC, the average savings yield in December 2024 was less than half a percent.1 You may have earned higher cash rates last year if you kept your money in CDs or high-yield savings accounts. But a 4% APR on a cash deposit doesn’t come close to last year’s 25% gain in the stock market.1
Cash is important to have on hand. You need it to cover unexpected expenses or income changes. Unfortunately, bank deposits don’t offer the same wealth opportunities as stocks. If you want to grow your net worth, stock investing is one of the simplest ways to do it.
The logical solution here of course is simple – start investing! However, the actual execution of the solution to start investing can be less than simple. That’s why we offer a free financial assessment at Pure Financial Advisors. It’s a free 1-on-1 meeting, where we fully assess your current financial situation and give you the feedback you need to help you get on the right path.
Whether you’re just starting your journey to investing, or are wondering if your current portfolio is aligned with your goals and future plans, this no-cost, no-obligation meeting is the perfect opportunity for you to ask whatever questions you may have about your specific situation. So don’t wait for our calendar to fill up, and take advantage of your free assessment today!
Source:
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“8 Expensive Investing Mistakes And How To Avoid Them.” June 30, 2025. https://www.forbes.com/sites/catherinebrock/2025/06/28/8-potentially-expensive-investing-mistakes–how-to-avoid-them/.
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IMPORTANT DISCLOSURES:
- Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC, a Registered Investment Advisor.
- Pure Financial Advisors LLC does not offer tax or legal advice. Consult with your tax advisor or attorney regarding specific situations.
- Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
- Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
- All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.
- Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.
CFP® – The CERTIFIED FINANCIAL PLANNER® certification is by the CFP Board of Standards, Inc. To attain the right to use the CFP® mark, an individual must satisfactorily fulfill education, experience and ethics requirements as well as pass a comprehensive exam. 30 hours of continuing education is required every 2 years to maintain the certification.
