David Lerner Associates: Deadly Investment Mistakes

David Lerner Associates: Deadly Investment Mistakes

Core Facts

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Making investment mistakes can be very costly for obvious reasons, and so they should be avoided if possible. Workers and retirees have been shouldered with an increased burden of taking personal responsibility for their own retirement and savings. 

This means that there is an increased need for economic know-how. But according to studies, financial illiteracy is something that is quite common, where many households are unfamiliar with even the most basic economic concepts required for making sensible savings or investment decisions. 

Here are some “deadly investment sins” that should be avoided:

Not investing in financial education

For more on financial literacy - see related articles in our newsroom:

Not diversifying

Diversification is an excellent risk management tool but only when used intelligently. For example, when diversifying a stock portfolio, you may want to consider non-related markets like gold, gold stocks, real estate, bonds, commodities, and other assets that exhibit low or opposing risk profiles.

Past vs. future

The past is not always the best measure of what is to come, especially in a volatile market where speculators can barely predict what will happen tomorrow let alone what might happen over the course of a coming year. 

In short, the investment advice you receive about long-term probabilities and average returns may have little or no relevance to the actual results you get. Don’t make the mistake of basing your investment plan on historical average returns. 

Not having a plan

Investing is a good thing. Investing without a plan is tantamount to throwing money against a wall and hoping that it will come back to you with profitable returns. 

Never invest on “hot tips,” rumors, conjecture, or other mumbo jumbo. None of these approaches, despite their popularity in the gambling get-rich-quick mindset of some investors, actually qualifies as a well thought out and intelligent investment plan. 

Consult with an expert advisor, and formulate a plan that aligns with your personal and financial goals. 



Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities. 

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. 



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Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website: www.davidlerner.com

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Jake Mendlinger
Account Manager
516.829.8374 X 232

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