Financial Advice Investors Should Ignore

[OneEyedDiva]

1. Sell in May and Go Away
2. Don't Invest When The Market Is Down
3. Stocks Are Risky, Invest in Bonds
4. You Don't Need Professional Advice (I admit, I do ignore this one, having chosen to educate myself, but those who need it shouldn't hesitate to seek professional advice).
5. You should have multiple financial advisors to stay diversified
6. Behold the January Effect
Here is the article from American Century Investments that tells why it's not a good idea to follow the above advice.
http://americancenturyblog.com/2018...oqua&utm_medium=email&utm_content=6-sayings-1

 

[mathjak107]

i will add buy low and sell high .

no other mantra has lost money for investors trying to do that .

we all thought low in 2008 was when we fell 2000 points. who knew we had 4000 more to go . stop losses and panicking caused so many to sell at a loss trying to buy low . a trend is your friend and when markets are plunginng next stop is usually down .

buy high and sell higher has made more money for investors than any other mantra . next stop in an up cycle is up .you have to be the unlucky last person in line before a down blast not to make money .

 

[Don M.]

Here is the article from American Century Investments that tells why it's not a good idea to follow the above advice.
http://americancenturyblog.com/2018...oqua&utm_medium=email&utm_content=6-sayings-1

All good advice. I serviced Am Century as one of my primary accounts for several years, while working in Kansas City. I met/had lunch with Jim Stowers, the founder, a half dozen times over the years, and he was one of the nicest, down to earth executives I ever met. He firmly believed in giving his clients the best and safest possible returns for their portfolios. I've maintained a modest fund with AC for decades, and have not been disappointed.

 

[KingsX]

.

I managed to save money, live comfortably and retire at age 55 all without investing in the stock market.

 

[mathjak107]

just imagine what you would have if you did ? nothing better than having your money work for you while you work for your money and double teaming the effort .

a nothing special collection of fidelity funds using the fidelity insight newsletter which i have done since 1987 ( not my numbers ) has taken 100k and without another penny added grew it to 2.80 million today . the s&p 500 is about 2 million today so having your money work for you in an efficient manner can certainly grow a lot of money over time as opposed to just you working for your money .

a penny saved is a penny earned but it will always be a penny , without great compounding . likely less than a penny with inflation and taxes ..

 

[OneEyedDiva]

.

I managed to save money, live comfortably and retire at age 55 all without investing in the stock market.

just imagine what you would have if you did ? nothing better than having your money work for you while you work for your money and double teaming the effort .

a nothing special collection of fidelity funds using the fidelity insight newsletter which i have done since 1987 ( not my numbers ) has taken 100k and without another penny added grew it to 2.80 million today . the s&p 500 is about 2 million today so having your money work for you in an efficient manner can certainly grow a lot of money over time as opposed to just you working for your money .

a penny saved is a penny earned but it will always be a penny , without great compounding . likely less than a penny with inflation and taxes ..

KIngsX...I agree with Mathjak on this one. I have advised my son and grandson that if all possible, leave the money I (hopefully will) leave them invested. My money has doubled in four years mostly due to portfolio growth. For me we're talking 6 figures, not 7 like Mathjaks though. Very impressive MJ! Unless there's a catastrophe or I have to stay in a nursing home long term, most of my money will be left for heirs.