You may make a few investing mistakes; however, there are big mistakes that you absolutely must avoid if you are to be a successful investor. For instance, the biggest investing mistake you could ever make is not investing at all or putting off investing until later. Make your money work for you – even if all you can spare is $10 a week to invest such a reoccurring investment in some retirement or brokerage account.
While not investing at all or putting off investing until later are big mistakes, investing before you are in the financial position to do so is another big mistake. Get your current financial situation in order first, and then start investing. Get your credit cleaned up, pay off high-interest loans and credit cards, and put at least three months of living expenses in savings. Once this is done, you are ready to start letting your money work for you.
To Do
Don’t invest in getting rich quick schemes. That is the riskiest type of investing that there is, and you will more than likely lose. If it were easy, everyone would be doing it! Instead, invest for the long term, have the patience to weather the storms, and allow your money to grow. Only invest for the short term when you know you will need the money in a short amount of time, and then stick with safe investments, such as certificates of deposit, high-yield savings accounts such as the one found at www.marcus.com by Goldman Sachs, money market accounts inside a brokerage account or short-term bonds such as the ones you can purchase with a 5% yield from https://worthybonds.com/?r=Fldji.
Don’t put all of your eggs into one basket. Scatter it around in various types of investments for the best returns. Also, don’t move your money around too much. Let it ride. Pick your investments carefully, invest your money, and allow it to grow – don’t panic if the stock drops a few dollars. If the stock is stable, it will go back up. Select well run companies that have a history of strong earnings, stable management, and, if possible, a stable dividend that has been raised regularly. One option is to invest in a target-date fund that rebalances as it approaches your retirement date range. For more on the diversified investments visit https://kgmeyerpc.com/what-is-a-target-date-fund-2/.
Don’t Do
A common mistake that many people make is thinking that their investments in collectibles will pay off. Again, if this were true, everyone would do it. Don’t count on your Coke collection or your book collection to pay for your retirement years! Count on investments made with cold hard cash instead of investing in intangible assets. Yes, precious metals and rare coins tend to maintain and hold their value, but they are not as reliable as equities and other securities. I purposely have avoided mentioning cryptocurrencies as they are speculative and not based on anything with an intrinsic value.
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