A common mistake is a firm blinding conviction that your company’s stock will continue to rise. This outsized concentration risk can instantly wipe out your net worth.
You should put your old home up for rent after moving into a new one. In most cases, it's a wrong financial and lifestyle decision. Being a landlord can be time-consuming and frustrating.
This advice can cause many investors to concentrate their portfolios on just a few familiar names. Focusing too heavily on these names could translate into lower expected return.
Many people believe that a tax refund is a good thing. This assumption couldn’t be further from the truth. A sizable tax refund means you loaned money to the government for free.
Pay off debt and have 3-6 months in an emergency account, then consider investing. Don't put off investing because some guru told you. You could lose out on years of potential gains.
In many cases, the small tax break you get is minuscule compared to the annual interest you pay.
There are zero reasons to keep a balance on your card if you have the funds to pay it off in full each month. Make on-time payments and keep your utilization low (two most factors of a good credit score).