Ten Common Investment Mistakes (And How to Avoid Them) Presented by: David S. Richmond, CLU, ChFC Chairman & Chief Investment Officer

Disclosures  David Richmond is a licensed Investment Advisor Representative in the states of MI, OH, AZ, CO, MN  Licensed to sell securities, annuities, & insurance  Affiliated with Sammons Securities Co.®, LLC, member FINRA/SIPC & Midland National  Richmond Brothers Financial Management Specialists, Inc. offers securities through Sammons Securities Co.®, LLC, member FINRA/SIPC  Fee-based investment advisory services offered through Sigma Planning Corporation, a registered investment advisor

Disclosures  Richmond Brothers offers securities through Sammons Securities Co.®, LLC, member FINRA/SIPC. The broker/dealer for Midland National’s variable products is Sammons Securities Co. Sammons Securities Co. is a registered broker/dealer under the Securities Exchange Act of Sammons Securities Co. is an indirect wholly owned subsidiary of Sammons Enterprises, Inc., of Dallas, Texas, the ultimate parent company of Midland National.  Dave Richmond and Matt Curfman are members of Ed Slott’s Master Elite IRA Advisor Group™

Disclosures  This material is provided for general and educational purposes only and is not intended as tax, legal or investment advice (or for use to avoid penalties that may be imposed under U.S. Federal tax laws). There will be an opportunity to schedule an appointment for an individual consultation at the end of this Webinar which may result in a recommendation of specific financial products that may help you achieve your financial goals  There is no obligation to schedule an appointment or purchase a product

Agenda  Common Investment Mistakes  How to avoid them  Overview  Q & A

Common Investment Mistakes  No Strategy  Inadequate diversification  Acting on emotions  Unrealistic expectations  Paralysis  Short-term thinking  Using Unreliable Sources  Not naming beneficiaries  Paying too much in commission fees  Overlooking cash flow

1. No Strategy  Make a plan and check to make sure you are on track with your plan at least yearly  Speak with a qualified professional if needed

2. Inadequate Diversification  Never put all your eggs in one basket  Divide funds between different asset classes  Try to keep number of different funds between 8 and 15 for manageability  Let advisors know about your investments elsewhere for proper diversification Diversification does not ensure a profit or guarantee against loss; it is a method used to help manage risk

3. Acting on Emotions  Investors often sell the winners and hold the losers  Remember how difficult it is to find a winning stock  “Be greedy when others are fearful and fearful when others are greedy.” –Warren Buffett

4. Unrealistic Expectations  Stock market averages were 10% in the last 80 years  S&P 500 Index has returned -0.65% in the last 10 years  Be realist when planning for the long term  Plan for 6% returns in retirement –(rate of return is for illustrative purposes only and is not indicative of your particular situation; your results will vary) It is not possible to invest directly in an index. Past market performance is no guarantee of future investment performance or success. Source:

5. Paralysis  Definition: a state of helpless stoppage, inactivity or inability to act  Remember: Change is constant  Don’t let change cause inability to act  Be willing to adjust your plan to accommodate changing environment

6. Short Term Thinking  Don’t buy a stock for 3 or 6 months –Unless it is a trade based upon an event  Buy stock for several years  Never turn an investment into a trade

7. Using Unreliable Sources  People think they know more than they do  Make sure to check a source out before taking a tip  Always remember that something that is good for one person may not be good for your situation

8. Overlooking Cash Flow  Many don’t understand the concept of cash flow  Make money with: –Appreciation  Very difficult to generate –Income/Cash flow/Interest/Dividends  Helps ensure portfolio stability It is not possible to invest directly in an index. Past market performance is no guarantee of future investment performance or success.

9. Not Naming Beneficiaries  Make sure to list beneficiaries on all IRAs, Roth IRAs, SEP IRAs, 401(k)s, 457, TSA plans, etc.  Wills don’t cover your IRAs, retirement plans  Review your designated beneficiaries often (at least once a year & after life transitions) and use them as part of overall plan –Name trust, individual or charity –May save you and your heirs on taxes

10. Paying Too Much In Commission Fees  Aim to pay no more than 2% per trade in commissions –If you invest $40,000 you don’t want to pay more than $700 on the trade –(Commission/Investment)= Fee %  Move to a broker that charges less per trade –OR put more money into the investment

Overview  Many things that investors mistakenly do  Make sure to do your research before investing and/or consult with a professional to help ensure mistakes are avoided

Questions We welcome your questions at this time REMINDER: –type in a question in the Questions pane and click send to submit it to Richmond Brothers

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