Why Aren’t My Investments Growing?

When you conscientiously save and contribute steadily to your 401(k) and your IRA but don’t see meaningful growth beyond your contributions, it can be a little disheartening. 

You may be wondering why your portfolio isn’t growing. And, more importantly, how can you get your investments back on track?

It’s important to review your investments regularly and benchmark them against market performance. Take a look at some of the common reasons why your investments may not be growing.

Not Having an Investment Plan

There’s an old saying, ‘If you fail to plan, you plan to fail.’ This is never truer than when it comes to your investment returns. Without a plan, you’re just throwing darts in the dark, hoping to hit a bullseye.

Listening to the Noise

If you turn on the TV or open a newspaper, you’ll inevitably be bombarded with news about where the market is going. Please don’t listen to all the noise; it’ll drive you crazy.

Trying to Time the Market

Investing in a bull market can make you think you can time your investments to take advantage of the current rising stocks. However, we often forget to consider the cognitive biases that can lead us to believe we can time the market and come out ahead.

Paying large and Unnecessary Fees

Nothing will limit your portfolio gains faster than paying large and unnecessary fees. It may seem like a simple idea, but many people completely ignore the fees they pay. 

Playing it Too Safe

While it may be disheartening to see the value of your portfolio decline during a market correction, it’s even worse to put your money in investments that don’t even match the pace of inflation.