The dumbestmistake I ever made was opening a account. It seems like a smart decision, right? Set up an account that allows you to withdraw tax-free.
But I found out that fees matter, as do how much youand withdraw.
I opened the retirement account because I was told I couldand then immediately withdraw , while reaping the . I only deposited $200. But the account had an annual fee of approximately $50. It cancelled out all . I then closed the account out of anger, spending another $40.
After nearly $100 spent investing mistakes you can make.$200, I learned my lesson: Find out fees before reaching for a bright, shiny . But my mistake is by far not the only one made by investors. Here are some of the dumbest
No company felt safer to invest in than General Motors (NYSE: GM) -- until bankruptcy. It's impossible to know what happen with a company you invested everything in. For example, you buy 500 at $50 a piece in a technology company. Prices drop quickly when newer technology comes out. In a few days, your $25,000 is now worth $500. If you love technology, consider buying of a containing technology . Even then, don't make it your only and do your research as far as past performance and future forecasts.
2. Being Way Too Conservative
Short of stuffing FDIC insured. Second, the current national average rate is 0.06 percent. It would take 30 years of depositing $100 per month to earn less than $300. Not exactly huge growth.in your mattress and then accidently disposing of said mattress with your still in it, one of the biggest mistakes you can make is this: keeping all your in a . First, if you ever do go over the half million mark in one account, you're no longer
3. Trading Too Often
To someone who loves investing, there is nothing more fun than studying the stock market every day to figure out your next move -- that is until you're surprised to see $350 in trade charges racked up at $7 per trade (especially if you thought you were on a free trading promotion). Promotions expire. Know the date and input it in your electronic calendar.
4. Not Considering Your Time Horizons
When you invest outside of a retirement plan, you lose tax incentives. However, consider what you really want reserved for retirement, since there are also tax penalties for withdrawing savings.early. Consider other goals such as for your kid's college , vacations and emergency
5. InvestingIn The Stock Market You'll Need Soon
5. Let's say you're a month away from buying a home. Your 20% down payment on a $200,000 home, $40,000, is invested in the stock market. Your stock prices drop 20% the day before you write the check. You don't have time for your stocks to recover, so you just lost $8,000. Unless you can afford to lose $8,000, or possibly more, be careful about keeping you'll need in the next few years in primarily stock-based .
The Personal financial advisors and certified public accountants are great resources. But don't forget to talk about with your friends and family. While they may not know everything, telling each other about financial mistakes can keep someone else from making the same one -- kind of like how I just shared mine.Answer: Stupid mistakes can be avoided by talking to someone you trust before making major decisions.