• Starting too late: Compound interest is powerful, so start early to reap the most benefits.
• Paying high fees: Commission charges can easily cancel out any interest you’ve earned.
• Investing emotionally: Planning, reason, and tried-and-true strategies lead to successful investing. Don’t try the newest, most exciting strategy just because it sounds good.
• Not investing with your own needs in mind: Don’t blindly follow a plan. Your portfolio should be tailored to your needs.
• Not factoring in taxes: Net profits from stocks are taxed as capital gains. A tax-deferred investment account can help protect the money you’ve earned.
• Taking big risks: Huge risks can pay off, but they can also backfire at your expense.