Basing investments on initial research6 of 6Anchoring, or the tendency of investors to place undue weight to an initial finding, could lead to bad investment decisions, and ultimately cause you to miss an opportunity to get the most from your investment strategy for lack of knowledge."It is important for your financial plan to be flexible and realistic. This is difficult to do if you take a myopic approach," McGrigg says. "In this situation, you might want to hire a trusted financial planner to help you understand all of your options." advertisementRelated Links:How to evaluate a mutual fund portfolioWhere to find value in the bond marketHow to build a mutual fund portfolioRelated Articles:Hold old savings bonds?5 ways to invest in sportsAlternative investing ABCs
Anchoring, or the tendency of investors to place undue weight to an initial finding, could lead to bad investment decisions, and ultimately cause you to miss an opportunity to get the most from your investment strategy for lack of knowledge.
"It is important for your financial plan to be flexible and realistic. This is difficult to do if you take a myopic approach," McGrigg says. "In this situation, you might want to hire a trusted financial planner to help you understand all of your options."