How to avoid bad investment advice - Deepstash

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How to avoid bad investment advice

  1. Never buy a financial or investing product from someone you just met.
  2. Getting returns over 12% per year is ridiculously hard. If it sounds too good to be true, it is.
  3. If you don't understand it, don't invest in it.
  4. If one of your friends recommends an investment that's making them a lot of money, they are probably suckers too. If you see the "results not typical" on any marketing materials, move on.
  5. There are no "secrets of the super-wealthy" that anyone will sell you for $500 or that you can take advantage of unless you have hundreds of thousands of dollars.

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Two of the most common investment questions are "what do you invest in " and "what are the best investing strategies"?

After you maxed out your 401k, Roth IRA, and SEP-IRA, invest the rest in the following:

Three essentials for successful investing: Invest in things you understand with low fees and minimal taxes.

For short-term investing, keep your money in a bond fund like the Vanguard Total Bond Market Index Fund or a certificate of deposit (DC) at your local bank.

You do not have to have a lot of money to start investing.

Many people get poor investment returns because they get emotional. Emotions around investing are simply due to a lack of knowledge.

You've worked very hard for your money. Don't gamble on investments you don't understand, nor listen to pitches unless you solicited them.

Bad investing advice can come from many quarters, such as wealth expos or financial advisors. If anyone promises you any type of return over 12%, 99% of the time, they are probably playing you.

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