Successful Investing – Helping Investors Avoid Common Investment Mistakes

The Top Mistakes made by Investors

In my dozen plus years of advising individuals and businesses I have found a number of common mistakes that have derailed even the best laid financial plans. I thought by sharing them I might be able to help others sidestep the pitfalls and the negative impact they can have on your portfolio and long-term financial plans.

1. Failing to establish a time horizon and investing accordingly -

If you have expenses that need to be funded in 3 years or less, you should not be investing the cash for them in the stock market or other risky investments. These monies should be carved out of your investment portfolio (the money earmarked for long-term investing) and invested appropriately in liquid assets such as money market funds or term-certain fixed income offerings. If the money is not going to be needed for 3 years or more, an investment plan should be established based upon specific a time horizon and risk tolerance for these funds.

2. Failing to thoroughly diversify your portfolio -

Many investors know about the concept of diversification and think that by owning different investments, they are diversified. Diversification of an investment portfolio makes good sense on an intuitive level. However, it wasn’t until Harry Markowitz published his model of portfolio selection that this concept became a formalized part of sound investment practice and formed the basis of today’s Modern Portfolio Theory. Beyond this basic concept of diversification, the key to Markowitz’s premise is the revelation that the risk of any investment can be reduced and/or performance increased by forming a portfolio of diverse and non-correlated assets. That is, it is important not just to seek a diversity of asset types, but also to seek assets that have low or near-zero correlations to one another. It’s not about owning different investments; it’s about owning different, non-correlated investments.

3. Letting potential tax implications rule your investment decisions –

Many investors delay selling an investment that has done well regardless of how good or bad the future looks for the holding. Their response is, “I will have to pay taxes if I sell.” By not selling, they set themselves up for not having to pay taxes at all – usually because the investment starts on a decline and their concern switches from “having to pay taxes” to one of “hoping for a turnaround.” Don’t be afraid to take some profits off the table. While taxes are an unpleasant result of investing, I prefer to look at them as a positive sign as it indicates you are making money and your investment plan is working.

4. Buying a stock based upon a “hot tip” -

Too many investors listen to a friend’s advice because he or she always seems to have the next “great” money making idea. They don’t take the time to assess the idea personally and jump in because it’s only a few thousand dollars they are investing. Unfortunately this is not investing – it’s gambling. If you want to gamble, go to Vegas and at least get free drinks, dinner, a show and a room for the risks you are taking. Any investment that is being considered for your portfolio should be thoroughly researched and have passed a comprehensive financial screening scrutiny.

5. Attempting to time the market -

Waiting an extra day, week, or month to try and buy in at the “right price” just doesn’t work. No one can predict the future. If they could they most likely wouldn’t be sharing this knowledge with you for free. Successful investors use time, patience and a disciplined approach to increase the likelihood of maximizing their investment returns – not trying to time the market. If you have done the research and the investment is sound and meets your criteria then buy it, regardless of timing.

6. Failing to regularly reevaluate your investments -

Over time all investment styles, strategies and types fall out of favor. So, like timing the market, it becomes virtually impossible to know what is going to be “hot” in the next bull market and what isn’t. For this reason it is always prudent to stay up-to-date on your investments to insure they are still the same investment that you originally purchased (segment drift and manager changes can be one reason they may have changed). If your investments consist solely of mutual funds then an annual review is a good place to start.

7. Basing investment decisions on emotion -

Maybe the stock market is going through a bad time because of a short-term geo-political or economic event. Stay calm and make an educated, well thought out decisions about what, if anything, to do. Assess whether the event will affect the economy long-term or if it’s just a short-term blip. The best move is often no move at all. If it is a short term incident, many times the smart, prudent investor will make additional investments because the current decline provides them with an excellent buying opportunity. The key to successful investing is to have a disciplined strategy and to stick with it.

8. Cashing out gains and dividends rather than reinvesting -

Once you’ve realized gains or had distributions and dividends paid out, insure they are reinvested back into your portfolio. If you pull out your capital gains, dividends and interest, your money won’t compound as quickly, thereby leaving you with a smaller chunk of change down the line. Letting your investments compound is one of the major tenets of successful investing.

9. Owning too much employer stock -

Many people get over-weighted in employer stock because of options and stock purchase plans made available in today’s competitive compensation packages. While these are great supplements to their annual salary they can put an employee in a position of having too much money invested in their employer’s stock. Additionally, it is quite common for people to invest in “what they know” and what do you know better than the company you work for? To compound the problem many people will add more employer stock to their 401k holdings and individual brokerage accounts. Not only does this create a diversification problem in their portfolio but it also subjects them to excessive single stock risk. A good rule of thumb to follow is to insure that no more than 5-10% of your entire investment portfolio is in any one single stock. If you find yourself in this situation the importance of creating a well thought out reduction strategy cannot be overstated.

10. Following the herd -

The most successful of all investors are moving in the opposite direction of what everyone else is doing. They buy when most are selling and sell when everyone else is buying. By following this simple plan you can preserve your capital and potentially sidestep the next bubble (can anyone remember real estate, internet stocks, and technology growth funds?).

11. Not investing at all –

Somehow in today’s society that Mocha Cappuccino Latte seems to take precedence over saving for the long-term. We are a society who wishes to satisfy the “here and now” rather than the securing our future. The important fact here is that those two are not mutually exclusive. In fact, BALANCE is the key in any long-term endeavor, but by always keeping an eye on the end goal you can make sure it is not out of mind while satiating the here and now.

12. Investing without a plan -

Investing without a plan and lacking the discipline to follow it is a sure way to lower your chances of success. The chances of obtaining any long term goal can be greatly enhanced by creating a strategy, following it and regularly reviewing it frequently enough so it reflects any changes that have taken place since implementation. Many investors start off with a small amount of money and start putting it to work without a plan. As time progresses they find they have a mish-mash of investments in their portfolio with no clear strategy or direction. It’s never too early to invest but it’s even better to invest early with a plan.

13. Taking too little risk -

Some people don’t want to take any risk and cannot stand the volatility involved with risky investments. While it may seem like you are keeping your money safe and secure by not taking risk, it is more than likely you are not because of inflation. If your time horizon is greater than 5 years it is recommended that you have no less than 25-30% in growth investments (i.e. stocks) in your portfolio to ward off the effects of inflation. The actual percentage to own is dependent upon many factors including but not limited to age, time horizon before money is needed, current financial situation, etc. A good general rule of thumb to use as a starting point for the percentage of equity you may include in your portfolio is “120 – your age.”

All About Your 3G Internet Service

In the technology circle, there is much hue and cry about 3G internet services. It is a known fact to everyone that 3G stands for “3rd Generation”, but very few are aware of this technology from its core. Basically, it’s an initiative taken by the International Telecommunication Union to create a global wireless standard for mobile internet access. However, it requires a minimum mobile internet access speed which is comparable to DSL (Digital Subscriber Line) internet speed. To meet the technology standards, there needs to be high-volume voice services.

Unlike its predecessor 2G (2nd Generation) technology, which was evolved around voice applications including talking, call-waiting and voicemail, 3G technology emphasizes on internet and multimedia based applications that facilitate web browsing, music downloads, video conferencing etc. However, to access 3G network, your device need to support an information transfer rate of at least 200 Kbit/s. With the increased demand for high-speed internet services, the popularity of 3G is also surmounting. The technology has multiple benefits to offer, some of which are discussed below:

High-speed Internet on the Go: Before the advent of this technology, it was almost a dream to get access to high-speed internet on the go. Modern developments in mobile technology coupled with 3G has created great opportunities for users to surf internet at a blazing fast speed, even while they are travelling.

Reaches Remotest Corners: It’s easy to find 3G access at places where wired connectivity is difficult to install. This helps minimize the gap in internet access in rural areas or areas with limited connectivity. The speed sometime exceeds the speed of dial-up internet services.

Affordability: 3G standards benefited the rural people to a great extent. While it’s expensive to set up wired connections at homes, the wireless internet costs less and offer better speed to the users. With the development of this telecommunication technology, users can now get high-speed connectivity even on their mobile devices.

Multimedia Usage: Both corporate and personal consumers benefit from the service as it facilitates the use of diverse multimedia applications and enhances the wireless internet experience. It enables real-time video conferencing, music download at a faster speed, uploading and downloading files at a speed that equals to wired broadband services.

Stay Entertainment: Internet offers multiple ways to keep the users entertained. For lightning fast internet speed and seamless network availability, users can enjoy online gaming, listen to their favorite music or watch movies online with their 3G internet connection.

Though, 3G internet technology is getting momentum both in urban and rural areas, there are still some places where this technology is not as effective as metropolitan cities like New York and San Diego. While telecommunication experts are hopeful to enhance the reach of both 3G and 4G (4th Generation) networks and make the services more affordable for the users, the increased traffic and the usage of mobile devices are the two main issues of concern for the tech experts. Moreover, to sustain a balance in the environment, there needs to take more precautions, as wireless rays often cause harmful radiation, which have adverse impact on the environment.

Everything You Need to Know Before You Buy

Asian Walnut wood flooring is one of the most unique hardwood species available in the market today. Often referred to as Acacia, this walnut hard wood floor is harvested obviously in Asia. Asian Walnut wood floors have become increasingly popular in the last few years. Although Oak is still the # 1 seller in wood flooring, exotic species such as Asian Walnut and Brazilian Cherry have made long strides towards becoming main stream wood flooring choices. If you are looking for a very distinct floor that is considered a center piece for your room or home, Asian Walnut hardwood flooring is definitely worth considering. There are several things you need to know when considering the exotic Asian, Acacia Walnut species of floors.

Most Asian Walnut floors are offered with a factory finish. Factory finished means the factory has applied multiple, protective coats of either polyurethane, aluminum oxide, or a combination of both. These finishes protect the floor from minor scratches and wear. Of course any wood floor can be scratched, but the current factory finishes are much better than 20 years ago. The best option is to find an Acacia wood floor with either an aluminum oxide or combination of aluminum oxide and polyurethane finish. If you buy unfinished, Asian Walnut wood flooring it will have to have the protective finish applied after installation in your home. This type of in home finish is not very comparable to a factory finish as a installer can not duplicate the heat and pressure to the boards the same as a manufacturing process in a factory.

Asian Walnut is usually available in 3 colors or stains. Natural is the most common color. Actually, natural is unidentified but has a protective finish. The natural Asian Walnut boards will have a wide variety of color ranges from dark to light. The darker colors will be slightly more predominant though. Another color commonly sold is Cinnamon or sometimes called Cherry. This color has slight, red hues to give a classy, ​​semi formal look. Cinnamon is a very rich, deep stain. The final color you may find is a stain sometimes called Smoke or Toffee. Smoke stained, Asian Walnut floors have a very similar appearance to another species, Black Walnut. The stain is not actually black or extremely dark, but does have a defect, darker hue than the other colors you will find. A Smoke stain, Asian Walnut is a nice alternative to it’s cousin, Black Walnut as the Asian version may be priced slightly less.

A tip to remember when getting samples of Asian Walnut hardwood flooring is to ask for two samples. Asian Walnut, or Acacia wood has substantially different characteristics between every board. Two samples will give you a much better idea of ​​what the floor is going to look like. Another hint is once you have decided to go with a specific color or dealer, buy one box first. When you get the box, loose lay it out in an area of ​​your home to make sure you like the color and style. You may or may not be able to send the box back to the dealer, but, your initial investment will be much less than if you had purchased the entire job. If for some reason you do not like the Acacia hardwood floor, you are only out about $ 100 or so instead of thousands.

A few design and construction notes to consider are the characteristics of Asian Walnut wood flooring. Almost always, Asian Walnut is a 3/4 “solid board which is designed for a nail down installation. The Asian species of Walnut wood flooring also has a distinct grain pattern. Large swirls and a loose grain structure give Asian Walnut one of the most Unique looks of any wood species sold today. This unique grain pattern works very well in large rooms and areas. Another characteristic of Asian Walnut, or Acaica hardwood flooring is the board lengths typically are not longer than about 4 feet. A tall growing tree, so the boards tend to be slightly shorter than traditional walnut trees. A final note on Asian, Acacia Walnut properties is that that it rates very highly on the Janka Scale coming in around 2,300 The Janka scale is a measurement used to Determine the hardness of a hardwood species. The higher the number, the harder the wood At 2,300, Asian Walnut is much harder than common Oaks which are around 1,300 or so. As a reminder, any hardwood floor can be bent, sc Ratched, scuffed etc, however, the harder the wood, the tougher it is.

How E-Commerce Can Increase You Revenue

Small and medium-sized businesses (SMEs) 10 years back found it hard & highly costing to work Globally. But nowadays Internet has made things much easier, from Small shops to large enterprises are now doing online business internationally and available 24/7 for anyone in the world.

E-commerce Websites are cost effective and its staff reducing, Where online strategies that can deliver much greater returns on a limited budget with affordable and efficient website solutions.

While it is impossible to know how many people actually see print advertising, online advertisers can track precisely how many see each and every ad and how many website visits it generates, enabling businesses to attract the highest

volume of targeted traffic, at the lowest possible cost. Whatever the visitor action – making a purchase, signing

up for a newsletter, downloading a report, conversions are the key to measuring Return On Investment.

With e-commerce you will get the opportunity to build your All-Time-Open-Shop and offer all services & products online which can be purchased with a click of a mouse.

Professional web site design is critical for success in the modern Internet Business World. Offering an attractive, intuitive interface with a logical and easy to use navigation layout will make the difference between a happy visitor (and potential client) and a frustrated web surfer at your website.

Your website is an integral part of your image, identification and communication strategy. Successful web communication comes from grabbing your visitors’ attention and providing a website that is comfortable to use. your web site should do both-innovative design captures the eye and is followed by a familiar and easy to navigate path.

A well-designed website is a mission-critical investment in

o enhancing brand image

o building consumer confidence

o increasing willingness to buy

From overall Website design and architecture, the simple things like clear contact information and telephone numbers, testimonials and case studies. Customers want to find what they’re looking for.

Setting up all requirements to accept payments online and automating all the processes, its all depends on reliable Web Development & Web Hosting solutions to ensure the best performance of your e-business.

Your E-commerce business can have its own online customer service solutions to meet your customers satisfaction like:

o Complaints Management System

o Live Chat Support System

o Trouble ticket System

o Online Billing System