Today’s news:

Invest your money wisely

Can we afford to make mistakes in this financial environment? In attending many networking functions, I have spoken with Queens’ financial advisors and listened to their input and experience.

Underestimating the time horizon for assets is a mistake you can make. Someone born in 1952 has a life expectancy of about 69 years; in 2006, 78 years.

Not having a clear investment objective can also be a mistake. People invest their money without any strategy, which leads their portfolios to ruin.

Gamble on high−risk stuff when you are younger and starting out. As you get older, many people want to see bigger returns instead of investment singles. You must have a well−diversified investment portfolio to show a profit.

Confusing income needs with cash flow needs seems to be a common mistake. Income and cash flow are not the same thing. Cash flow is how much money you need for living expenses and personal needs. Income is the amount of dividends and interest earned by a portfolio that, in the case of a taxable account, you will pay current income taxes on.

The way you generate income can affect asset growth and the taxes you pay. These factors will have an impact on your ability to generate cash flow. It is a mistake to think you should get the cash flow you need solely from your portfolio income without touching the principal.

Avoid investing in foreign securities. The United States represents less than 50 percent of the developed global equity market.

Also, do not be overconfident in your own investing skills and do not invest based on known information. Investing on known information falls into my category of “they said it” and “everybody is doing it.”

So How’s Business regarding investment mistakes? Use common sense when making investment decisions and ask the pros for advice — they are pros for a reason.

Reach Joe Palumbo at 516−248−0256 or info@camelotlimo.com.

Pin It
Print this story Permalink

Reader Feedback

Enter your comment below

By submitting this comment, you agree to the following terms:

You agree that you, and not TimesLedger.com or its affiliates, are fully responsible for the content that you post. You agree not to post any abusive, obscene, vulgar, slanderous, hateful, threatening or sexually-oriented material or any material that may violate applicable law; doing so may lead to the removal of your post and to your being permanently banned from posting to the site. You grant to TimesLedger.com the royalty-free, irrevocable, perpetual and fully sublicensable license to use, reproduce, modify, adapt, publish, translate, create derivative works from, distribute, perform and display such content in whole or in part world-wide and to incorporate it in other works in any form, media or technology now known or later developed.

CNG: Community Newspaper Group