4au
Thanks.
A cut and paste required from Russell's article or use this link.
geocities.com
I particularly like 6 with all at once being expanded to include over 3 to 5 years while keeping investors in a state of denial. I try and warn others about number 7. When the governments allow you to defer taxes, it is for their benefit, sort of a tax safety net. When governments income from income tax decreases, they know some of the difference will be made up from the newly unemployed who have to draw on that tax deferred money and pay taxes on it. Not very efficient though due to imploding capital.
As I subscribe to Loeb's theory on diversification, rule number 4 about mutual funds providing diversification should be about diversification and how the mutual funds use this hot button to sell their product. The same button provides the denial on autoreplay, you know the phrases. LTBH, you've bought a little early but now it's bottomed, hold on for a good long ride, it's down 50%, it can't go down any further (well it can, another 50% then another...).
Here's the full list
September 13, 2002
The ten things investors need to know right now (in no particular order):
1. Understand the difference between saving money and investing money.
2. Understand what compounding interest is.
3. Determine what your timeframe for investing is.
4. Mutual funds, contrary to popular belief, aren't necessarily a conservative means to diversified investing.
5. Making money only happens over time.
6. Losing money can happen all at once.
7. Laws and regulations enacted by the government are not meant to protect investors from risk.
8. Taxes are an integral part of every investment, always consider the tax implications.
9. Before buying a stock consider how much money you are willing to lose.
10. Always seek at least three different sources for financial information to confirm your conclusions to buy or sell.
by Toucalit Benton
Regards
Bob |
