10 Mistakes Every Investor Makes and How to Avoid Them HTML version

10 Mistakes Every Investor Makes & How to Avoid Them
5% or more of your investment capital right off the top. If it is an
upfront load fee, you pay this charge before your money is even
Secondly, if you buy mutual funds at the wrong time, you can get
nailed with paying a taxable dividend that you didn’t actually receive.
According to SmartMoney:
It's always dangerous to buy mutual funds at the end of the
year, since you may be buying right into a big taxable dividend.
If you are purchasing shares of a fund in the fall, check the
distribution date and wait until it passes before writing your
So how do you escape all of these fees and make money on
your investments?
Thanks to Zecco.com, investors can now buy
commission-free stocks and avoid trading
fees all together. They offer 10 free stock
trades per month, and only $4.50 after your
10 free trades. Zecco makes their money with
advertising and margin spreads, so you can
now invest for free.
To avoid capital gains, you have a few options. The most obvious
would be to invest in a tax sheltered retirement account, such as an
IRA or 401k. These programs offer exceptional tax benefits that can’t
be beat.
A stock investor can also offset their capital gains by selling losing
stocks during the same year that they liquidate their winning stocks.
Consult with a certified financial planner when considering this or any
of these options.
If you are a real estate investor, you can roll your profits into a 1031,
tax deferred exchange. This allows you to roll your profits from the
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