Common investment mistakes that can cost you money

SACRAMENTO, Calif. — Making the most of your money is an important tool for financial success, and investing is a good way to put your money to good use.

Experts detail three common investment mistakes to avoid that could cost you money.

“The less emotion you have when it comes to investing and investing success, the more objectivity you have. Overall, you are more likely to be successful in the long run,” said Joseph Eshlman, president of TowerPoint Wealth. I guess so,” he said. .

emotional investing

Fear and greed are powerful emotions, so don’t let them lead you off course when it comes to money. Eshlman says whether the economy is doing well or not, it can be tempting to make bad decisions. Be rational or objective and stick to your plan.

information overload

We can’t get enough cell phones these days, but information spreads quickly through ads on social media, emails, and even text messages from friends. Not all of it is useful, especially when it comes to investment advice.

“Inherently, there’s something hot and sexy about these types of ideas, and given that you have a consistent overall goal plan in place, it kind of flies,” Eshlman says. .

He said people should not be fooled by hype, trends or attractive headlines. He suggests sticking to your strategy and not getting distracted or gambling for short-term gains.

uncle sam

You can’t avoid taxes, so don’t let your dislike of taxes prevent you from making more money.

For example, one investment you can make is owning bonds. Interest earned on California municipal bonds is not taxable. This is good news. However, interest rates on California municipal bonds are lower than some other taxable bonds.

“If you have a 2% California municipal bond, you pay no taxes, so your net is 2%. If you have a regular bond that pays 4%, you probably pay 1% tax. But it’s still a net gain (3%) overall,” Eshlman said.

The bottom line? Reduce the number of investments. Even if you have to pay taxes, you may end up getting more money.

See more ABC10: Understand California’s new income tax rate and who it affects