Investors make the same mistakes over and over again. They are all well documented, but rarely do we try to recognize our errors, evaluate the decision making process, and finally, avoid the mistakes in the future. One of my favorite financial bloggers, Barry Ritholtz, recently wrote an article for The Washington Post listing Investors’ 10 Most Common Mistakes. Here are three and how we combat these mistakes with the Snider Investment Method.
Run the Numbers
Fewer than half of Americans have calculated how much they need to save for retirement. Even though we are consistently prodded with advertisements and resources urging us to estimate how much we will need. Americans are still choosing to ignore the advice of financial experts.
Investment Tax Basics
Americans have been paying taxes on their earnings for almost 100 years. During that period of time, tax laws have continually changed and have certainly increased in their level of complexity. Although no one enjoys paying taxes, at Snider Advisors, we like to remind our clients that taxes are an inevitable part of making money – and you should never let the tax tail wag the investment dog.
Filial Responsibility Laws: Your Parents Your Responsibility
When John Pitta’s mother couldn’t pay her nursing home bill, he was sued for almost $93,000. The nursing home won the case, so Pitta appealed. But because his mother was considered indigent and Pitta had the financial resources to cover his mother’s bill, he lost the appeal and the courts required him to pay.
Common, but Misleading Retirement Advice
Saving for retirement is one of the most daunting tasks the average person will face during his or her lifetime; because of this it comes as no surprise that everybody seems to have a different strategy for dealing with the problem. While there is no one correct solution for retirement planning, many widely accepted theories have been created that may not be entirely true. It is important to thoroughly analyze all the pieces to your retirement plan and make sure that your plan is build on a strong foundation. Here are a few widely acknowledged, yet often misleading pieces of retirement advice.
