Top 8 Common Investment Mistakes
Investing your money is a great way to save for the future, as long as you know how to invest. Making investment mistakes can cause you to lose a lot of your hard earned money. Below are the 8 most common invest mistakes people make so that you know what not to do.
Top 8 Investment Mistakes
- People buy individual stocks. Even popular companies, such as GE and Microsoft, can lose 10% in just a few days.
- Hiring an investment adviser who is paid by commission. This is not an incentive for them to make you money. This is more of an incentive to buy and sell stocks for you.
- Buying without looking. You should look over a three year price chart before you invest your money. Are you buying right after the stock went up? Will you be able to ride the ups and downs?
- Hiring an adviser with little or no experience. Since experience is the best teacher, make sure the investment adviser you chose, has some. Ask friends or family members to refer you to someone.
- Being pushy. Don't try to force things to happen. Selling high and buying low takes times, planning and patience.
- Investing too much in one place. This is a classic high risk situation. Don't put all of your money in one stock.
- Not having all the legal documentation. You need to have an estate attorney draw up a will, a trust, a power of attney, and a living will. And they need to be drawn up properly.
- Not saving properly. Make sure you have the money you need first. And take advantage of 401(k) plans.