When you are working out your next financial strategies, don't allow yourself to be overwhelmed by too much information. While the latest investment news is important, don't let it bombard you.
When you are working out your next financial strategies, donât allow yourself to be overwhelmed by too much information. While the latest investment news is important, donât let it bombard you.
In today’s Information Superhighway, we find ourselves bombarded by too much information. As we sit attached to our iPhones or welded to our computers, greedily devouring the latest personal finance blog, it’s only too compelling to read yet another financial planning report, check stock prices, browse another list of hot stock tips, and read another opinion on the latest edition of the property investment news. We are drowning in what is often referred to as ‘data smog.’
Although it’s nice to be up-to-date, sometimes too much information can actually be harmful. It is difficult for the average person to sift through loads of data, separating fact from fiction. While the data itself may not be harmful, the amount, speed, and intensity which it bombards us can be debilitating. For example, maybe you have some extra money that you want to invest, so you want to find the best stock to invest it in. While one leading pundit advises stocks in a high-tech start-up company, a different expert advocates investing in a blue chip insurance company. Each one may have detailed reports about the company, telling you everything from the color of the tie that the managing director wears to the company’s latest project somewhere in Africa. But who’s right? And do you really need to know all the given information?
When you find yourself drowning in a whirlpool of information, it’s always a good idea to get an objective opinion to help filter out the facts that, while they may be important, may not be relevant to the personal decisions you need to make. Knowing what information is relevant to the decisions you face is an important filter to use in creating your financial strategies. If you need help filtering the data smog attacking your computer terminal, consider using your WiFi and iPhone to schedule a meeting with your financial advisor.
(For more information on how to choose a competent advisor, read my article at: http://www.infobarrel.com/3_Reasons_to_Choose_a_CFP_to_Guide_You_through_the_Financial_Planning_Process_)
Disclaimer: This article is for educational purposes and is not a substitute for investment advice that takes into account each individual’s special position and needs. Past performance is no guarantee of future returns.