Nine Top Investment Sins to Avoid

Before you tread on investing waters, it is helpful to know the most common pitfalls which every aspiring investor must avoid at all costs.

1. Doing nothing. Waiting for the grass to grow will not help you achieve a comfortable retirement.
2. Starting late. Procrastinating on an investment is the second biggest mistake to make. The earlier you start investing, the better off you will be.
3. Investing with unresolved credit card debt. Before even dreaming of a career in investing, pay off your credit card debt first. If you have $5,000 to investment and roughly the same amount owed to credit card companies, investing will surely be counterproductive.
4. Short-term investing. Invest money on shorter-term and safer havens for short-term goals. Invest the rest of what you have that you do not need for at least three years on the stock market.
5. Refusing free money. Never turn down a dollar offered provided it has no strings attached. Take advantage of what your company offers such as a 401(k) or similar tax-advantaged retirement savings plan with an employer match.
6. Playing it safe. This is a sin if you are young and you are missing out on investing in stock. Youth has its privileges. Be more of a risk-taker and reap long-term profits in stock. You have time on your hands to survive whatever the dips in the stock market and can choose to transition into bonds later.
7. Playing it scary. Being a daredevil is not always profitable. Do not risk all your money into a doomed investment.
8. Believing collectibles are investments. Collectible memorabilia or paraphernalia will not provide for you in the years to come.
9. Trading in and out of the market. Stick to a long-term investment for bigger profits. Trading in and out will burden you with fees later on and slice away your returns.

Goodbye, Bruce Wasserstein

I was saddened by the news of the financial mogul, Bruce Wasserstein. He was a legend in the private equity industry. Bruce Wasserstein led Lazard during its some of its most difficult times, and transformed the firm into a modernized, streamlined powerhouse. Here are some links to some articles about Bruce Wasserstein's passing:

Lazard Tribute to Bruce Wasserstein, veteran of 1,000 mergers (Guardian)

Remembering Bruce Wasserstein (Newsweek)