Here we are talking about one of the biggest financial mistakes of seeing people make and here’s a really common one:
Investing in the wrong way.
One is buying investments based on the past. See if an investment does really well make him attempted one to buy it. No matter what you think: The past performance does not guarantuee the future, will be like saying – because it rains yesterday’s it’s gonna rain today. We all know there is no such rule
Here is a similar problem. Buying an investment after it hits an all time high. It’s a bad idea. Look at Real Estate. If you bought at the the peak of the bubble in 2006, you’re regretting it now. And the same thing with gold. Nobody wanted to buy gold when the price was low, but when the price is high – all people talk about.
It’s much smarter to create a diversified portfolio, with many types of investments.
One other mistake wee can see all time again: Taking financial advice from people who know little or nothing about personal finance. You know who they are? They are coworkers. Someone might say. “I moved my 401k to cash” or ” I’ve stopped contributing until the market improves and you should too.” Thiss can be very dangerous advice!
Another piece of bad advice: “Only conservative enough, your 401(k) could get the employer match” That’s terrible advice!
Employer retirement plans are the best way for you, to save for retirement regardless of whether it offers a match from your employer. If you don’t put money in, you wont have anything in retirement.
How do you avoid making a mistake of your own?
One telltale warning sign: Watch out for statements that are made in absolute terms. “You can’t lose with real estate!” “Insurance is a great investment!” “Pay off your mortgage!” A professional financial visor can show you
- how to eliminate debt
- build cash reserves
- buy and manage investments
- develop an estate plan
- save for college and retirement
- make the best use of employer benefits
- buy the right insurance
And so with any other financial issues. The truth is there’s no one single blueprint to follow for everyone. The right advice depends on your situation