Investing Mistakes to Avoid: #10 Picked Off First

By Seth Michael @ Shutterstock.com

Your Survival Guy has compiled a list of investing mistakes to avoid. It’s a list for highly successful, fairly wealthy investors. Today’s lesson is what I refer to as “Picked off first.” Do not get picked off first base.

Life Comes at You Fast. Slow It Down with My Friday Email. It’s Free.

When you have some money, or in my example, get a hit, you need to protect yourself. You can’t afford to be picked off and sent to the dugout. But it happens with far too much frequency because investors are caught sleeping.

Here’s what I’m talking about. One of the first things you learn about investing in bonds is the risk-free rate of return. You can see it below. That’s gravity or Dick Young’s North Star. It’s your lay of the land.

Time and time again, investors risk their precious principal to get that extra percentage point. It makes no sense to Your Survival Guy, whose focus is to keep what you make. They’ll put $100,000 in something that pays a measly extra point to get $1,000 bucks and risk the principal.

This is the habit of the investor with a spending problem. He daydreams about his needs. Then disaster strikes. Do not be a needy investor. Start by saving ’til it hurts. Don’t get picked off first.

Action Line: I’ll be in your ear to help keep you focused. I’m here to help.

Read every one of the Investing Mistakes to Avoid here.

Bio
Latest Posts

E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West (RIP JB) and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.