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15 Investing Axioms

September 26, 2013

Here are 15 things to be aware of when making decisions about your personal financial planning and investing.

  1. Financial planning is about providing for future family financial security… nothing else
  2. Losses hurt more than gains benefit
  3. In many cases, you may not get an opportunity to recover from a loss
  4. Cash-flow needs and timing should drive investment decisions, not desire for asset acquisition
  5. Don’t assume a greater risk than you need to
  6. Risk avoidance, in general, is not possible and uninformed choices of what risks to avoid will not typically get you where you want to – and need – to be
  7. Before making any investment, always ask, “What happens if these choices turn out to be wrong?”
  8. Make realistic goals and use them to lead your decisions
  9. Interest on credit card debt is the cost of past excess spending or consumption – pay your balances down and reduce interest
  10. Investing decisions should not be made emotionally
  11. Money and stocks are inanimate – don’t form attachments.
  12. Just because everyone seems to be doing something doesn’t make it right for you
  13. You are not “everyone,”  “average” or “like most people” – you are “you” and you are “unique.”  Know what’s in it for you when you invest
  14. You are the most important person in the world to you.  Only deal with advisors that treat you that way – always!
  15. Don’t be stupid!
5 Comments leave one →
  1. Robert Nagler permalink
    September 26, 2013 11:47 am

    Hi Ed I like number 15 we all might stupid investment at some time in our life from bad information and believing in people we know

  2. Rick Mendlowitz permalink
    September 26, 2013 3:40 pm

    I say #15 about every 20 minutes.

  3. September 26, 2013 4:18 pm

    Hee Hee!

  4. September 27, 2013 2:05 am

    A friend send this to me and I am posting it.
    Sage advice, as always. Small suggestion regarding wording of one of the items:

    6. [Risk] Total avoidance of risk, in general, is not possible and uninformed choices of what risks to avoid will not typically get you where you want to – and need – to be.

  5. October 7, 2013 1:52 pm

    Excellent advice!

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