Mika
VIP Contributor
Here are 3 things to avoid in if you want financial security.
Not knowing what you have invested in: If you invested in the wrong assets and wrong markets, your investment will not give you the financial security that you desired. Don’t just listen to friends and family, don’t blindly follow any financial advisor, it could be a financial gamble.
Actively trading: Trading on speculative assets can be detrimental to you if you have limited funds for investment. Only the whales can outperform the market, the rest of us will be caught when the markets start going down. Buying when the market is down and selling when the market goes up sounds tempting but difficult to achieve.
Not tax planning: Taxes are one of the largest expenses in your life. You need to see what the rich do and maximize your tax situation more than necessary. Find legal ways to reduce tax. Retirement accounts and real estate have comparatively lower taxes. Mortgage interest and insurance help you to reduce your taxes.
Not knowing what you have invested in: If you invested in the wrong assets and wrong markets, your investment will not give you the financial security that you desired. Don’t just listen to friends and family, don’t blindly follow any financial advisor, it could be a financial gamble.
Actively trading: Trading on speculative assets can be detrimental to you if you have limited funds for investment. Only the whales can outperform the market, the rest of us will be caught when the markets start going down. Buying when the market is down and selling when the market goes up sounds tempting but difficult to achieve.
Not tax planning: Taxes are one of the largest expenses in your life. You need to see what the rich do and maximize your tax situation more than necessary. Find legal ways to reduce tax. Retirement accounts and real estate have comparatively lower taxes. Mortgage interest and insurance help you to reduce your taxes.