ADHD and Investing Mistakes

One request that I get from adults with ADD is for advice and information about investing. The investing aspect of money management can be very stimulating; it is also an aspect where mistakes can be very costly. Here is a list of 3 investing mistakes that adults with ADD are often more susceptible to.

1. Not paying off high interest loans before investing.
Paying off high interest loans is usually the best investment that you can make because you can get a guaranteed return between 10 and 25%. The impulsive ADD adult can often overlook paying off loans because investing can be more exciting and stimulating.
2. Emotional Investing
ADD adults often rely on their gut feeling when it comes to making decisions. They also tend to invest heavily in people and companies that they believe in. While these are not negative qualities, they can have negative consequences. ADD adults are more susceptible to investment sales pitches pushing products that are not a good fit and/or have high commissions and fees. ADD adults need to make sure that they are not investing too much money into their business or their employer’s stock. Making sure that you have a proper investment mix is important in order to protect your investments. The impulsive nature of ADD adults makes them vulnerable to investing based primarily on the recent history of an investment. It is important to evaluate all aspects of an investment before you decide to buy or sell.
3. Lack of understanding
There are a lot of boring details involved when deciding what investments to invest in. It is easy for ADD adults to get overwhelmed with the details. However if you do not understand what you are investing in, you run the risk of not getting what your investment is worth, getting overcharged for fees, or losing your total investment.

Comments

[tanyetta]

you wrote--Making sure that you have a proper investment mix is important in order to protect your investments--

what is a proper mis of investments?

this is how i feel--3. Lack of understanding
There are a lot of boring details involved when deciding what investments to invest in. It is easy for ADD adults to get overwhelmed with the details. However if you do not understand what you are investing in, you run the risk of not getting what your investment is worth, getting overcharged for fees, or losing your total investment.