The Worst Investment Mistakes

Let’s explore the WORST errors that even the most seasoned investors can fall victim to. We delve into a range of damaging financial blunders such as misunderstanding the basics of investing, sinking money into a friend's business, or getting swept up in the trend of the moment.

We discuss the importance of understanding your own financial capacity and the detrimental effect of investing without a well-researched, long-term strategy. Furthermore, we shed light on beneficial investment avenues, such as auto investing in index funds and the potential of equity-indexed annuities. This comprehensive guide is aimed at making sure your investments work for you and safeguarding a comfortable future, even when you retire or decide to stop working.

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Chapters:
00:00:00 - The Purpose of Investing
00:01:22 - Living Below the Comfort Level in Retirement
00:02:32 - The #1 Worst Investment Mistake: Ignoring Relativity
00:03:38 - Stick to a Percentage: A Solution to Retirement Planning
00:04:46 - Auto Investing and Annuities
00:05:56 - Investing with friends will ruin friendships
00:07:01 - Investing with Johnny
00:08:08 - The Dangers of Herd Trades and Outsider Investing
00:09:15 - Finding Your Own Tulip Run

[alexoda]

I’m a Junior in College and I major in Finance with a minor in Economics and I really appreciate the cold cut advice. You’re genuine about your recommendations and don’t try to confuse or mislead people. Love your content and hope you keep it up!

[AfterDeath]

Not a bad video. Not an annuity fan, but definetly appreciate how they are wise for a very big group of people.

Also one big thing missed in this video in my opinion.. not sorting out your financial house before investing. No point to investing if you do not have an emergency fund or if you are paying 19% interest etc.

But yeah get rich the boring way is solid advice.

[gopowergogo]

Is an annuity really that good? I’ve never been recommended it. Always invest in the stock market, 401k, Roth IRA, HSA but never an annuity.

[summerwind]

Thank you, yeah I avoided giving money to my friend for his business which is now defunct. And just put money aside in my 401k and IRA and invest in ETFs and mutual funds, after a few years it’s impressive to see how my little nest egg has grown

[rosearmor]

Thank you for bringing excellent content into the world, and for helping people become aware that FOMO investments are unnecessary. There are many ships that have crashed on that rocky shore.

[malexander]

You provide the most honest investment advice I've ever come across! Absolutely LOVE your videos :)

[bankstonmills]

what would you recommend to someone who is lets say40ish years old and basically has about 20 -25 years to invest? would an annuity make sense at this point or maybe something more aggressive? thanks for the videos, very easy to watch and informative!

[JefferyZinke]

I am 46 years from Bangalore. Right now I am seriously considering retiring in next 2-4 years (both my kids will be in college in next 2 years). As on today I am able to cover all my expenses by the returns on my investment. Out of my total investments, I have ~30% in MFs/Stock market, ~20% in Real Estate (Apartments), 10% in Gold, 30% in FDs/Bonds and 10% in Cash/Cash equivalent (yet to be invested)... I have stopped paying for Life Insurance but have comprehensive health insurance coverage. I may have to dip into my investments in next 5-10 years for my Kids college education completion and want to continue working while checking that all my expenses are covered for next 2-3 years with my current savings only. That will be my trigger for retirement. Any suggestions from the friends out there, to help me plan my retirement better..

[shekharmoona]

I really want to hear his opinion of the relationship between TraxNYC and Prime Hydration after this debacle.

[snakeking]

I get a VA check and own my business. Is it better to continue using the extra for Treasury bonds or go the stocks? For the future

[samuelgutierrez]

I love indexed accounts, im a life insurance agent but i market to children and always set them up with maxed cash value IUL's

[sam.zornes]

Hey Nick,
I'd be curious to get your thoughts on MAIN (Main Street Capital Corp)

From my research it seems to be a good stock, but I'm curious to hear your "professional" opinion.

[rutiliotorres]

Great advice! You always have the best!

[jimcetnar]

Blackjack is a good investment, got it. THANKS CROWN 🙌👍

[Heapfael]

Annuities: Should have mentioned that the downside protection costs you money. So with annuities you have less risk of having very little money but increase the risk of not enough having plenty in your retirement

[conorkoesterman]

Nick I’m a huge fan and I wish you’d explained more about how taking the risk out of “investing” via annuity. Common knowledge says that you don’t get as much return on your capital via annuity. I would have loved to see you take on the “common knowledge” or explain why it is not a significant effect.

[Soughts]

Thank you, Nick! What is a good annuity return? Is 3% good enough?

[Akarikotsu]

That’s interesting I’ve been investing through putting my money in a high yield savings account though it’s a steady creep monthly it’s more than what a bank would give me .01 cent

[richardgarcia]

What about stocks that pay monthly dividends - how does it work and if it’s worth it

[alexwoxst]

The best strategy is always an extreme barbell strategy. 90% of equity in non risk (cash or treasuries) and 10% in extreme risk ventures where you can control the outcome (entrepreneurship). Once the 10% of capital is deployed in a Corp and there is proof of concept, use as much leverage as possible using only the original 10% in the corp as collateral.

This strategy:
- Minimizes downside risk to -10% of original portfolio
- Does not limit upside
- Places outcomes in your own hands

Finding what venture to deploy the 10% risk capital is the difficult part.