December 28, 2010
5 Investor Dos and Don'ts
With planning for retirement and building that college fund or nest egg post-recession, new rules apply when it comes to investing.
First VP of Commercial Banking at SunTrust Banks, Inc. Jennifer Hall helps PINK compile a list of the top five investing mistakes to avoid:
1. Don’t invest based on emotion. Don’t get attached to investments you need to let go of, and be conscious of any "overconfidence" bias that could come back to hurt you.
2. Don’t mix business with pleasure. "Be leery of friends who come to you with ‘sure thing’ ideas,” warns Hall.
3. Don’t assume. When investing, talk to a financial advisor for an objective opinion on price legitimacy rather than just trusting your gut.
4. Do your research. Learn the industry and pitfalls so you become "an educated consumer," Hall adds. “Don’t invest in something you know nothing about.”
5. Do prepare. “Plan for a worst-case scenario,” she says. “If you ended up losing your investment, could you still eat? If not, don’t do it.”
Bonus PINK Link: Before you invest, do you need a money makeover?
By Caroline Cox
"It is better to be prepared for an opportunity and not have one than to have an opportunity and not be prepared." Maya Angelou