Comments on: Avoid These Five Investment Mistakes

By: Daddy Paul

Daddy Paul — Fri, 29 Jan 2010 01:48:36 +0000

“Whether it’s the hysteria to buy or the hysteria to sell, giving in to market crazes can be a huge mistake.”
I really will never understand doing this but I see to many doing it. Back in 2000 my coworkers were putting every dime they could into the market. By the middle of 2001 they were selling out. People were selling out in March of last year. What a nice way to lose your shirt.

By: Aaron

Aaron — Thu, 28 Jan 2010 14:51:24 +0000

Regarding point 2, overconfidence in your abilities, I suggest you compare your returns to an index. Rather than looking at the absolute return, the relative one is more helpful. Theoretically, anyone can get the same returns in an index fund, so it’s the amount above that return that you should be proud of.

By: Miranda

Miranda — Thu, 28 Jan 2010 13:18:54 +0000

You make a good point. It’s a good idea to check the fees before you get too into dollar cost averaging. Many places now will allow you to have reduced fees if you set up a regular, automatic plan. And, if you don’t have a big lump sum, dollar cost averaging may be your only choice. But you can usually make more than enough to offset the fees.

By: Allan @ Rich Money Habits

Allan @ Rich Money Habits — Thu, 28 Jan 2010 09:05:40 +0000

I always wondered if using dollar cost averaging is such a good idea since if you have to invest same amount every month, then you’ll have to pay 12x more fees. But I guess if you earn more to compensate for these fees in the long run, it would still be a good strategy.

By: FinEngr

FinEngr — Wed, 27 Jan 2010 17:23:38 +0000

No kidding…Never understood why people would default to specific agencies who have “expanded” their services.

Think of the context. You could go to a surgeon for a crown or a dermatologist for an appendectomy. Both could probably perform the task, but someone who specializes in that field would do a better job.

By: Miranda Marquit

Miranda Marquit — Tue, 26 Jan 2010 18:26:42 +0000

No kidding. I was young. And none too bright.

By: MoneyNing

MoneyNing — Tue, 26 Jan 2010 18:04:52 +0000

Insurance agent?.? Yikes.

No more managed funds for me unless it’s a widely known fund because chances are good that you are paying someone else some commissions just by owning it.

By: Cd Phi

Cd Phi — Tue, 26 Jan 2010 16:37:45 +0000

I don’t know much about investing just yet but I’m interested in starting next month. There are so many things to learn. Hopefully if I follow your tips, it will guide me in the right direction.

By: MoneyNing

MoneyNing — Tue, 26 Jan 2010 16:14:43 +0000

A good starting point is actually the fund recommendations of all the major money magazines. Kiplinger, Money Magazine etc…

While they are very generic suggestions, at least you won’t be looking at “bad” options.

By: Miranda

Miranda — Tue, 26 Jan 2010 15:11:12 +0000

I know what you mean. My first investment experience was in a managed fund courtesy of my insurance agent. Yeah. Live and learn, indeed.