As you would imagine, our investment professionals here at The Mutual Fund Store® are accustomed to giving financial advice, which is how they help increase the probability of success for our 38,000+ clients. To mix it up a bit, we asked them to share the best (and worst) personal financial advice they themselves received along the way.
Here is what Andy Smith, co-host of The Mutual Fund Show®, had to say:
What was the best investment advice you ever received?
“Snuffy, my grandfather, had MANY little bits of advice. But one saying about money really stood out, and it was also engraved on a money clip and on a small antique piggy bank they had in their house – “Put nuts in tree.” Four words, but one great idea: SAVE.”
What was the biggest investing mistake you ever made?
“I want to say that it was either 1999 or 2000 and I was working in Chicago at a tech firm. It was the classic story: a co-worker was married to a guy who worked for a firm that was being acquired by this big-time Internet company and the IPO was THAT DAY … and the ‘big tip’ was to get in while you could for a moonshot.
“I had no real 401(k) to speak of, but I think I had a Roth that Dad helped me set up a couple of years prior. I called the broker (from the payphone in the lobby, no less) and told him that I wanted to buy shares of this IPO … THAT DAY. Knowing what I know now, I can understand why he was chuckling during the conversation, but he did play it pretty cool. I wasn’t able to watch things online, so I had to excuse myself from work and keep running to the lobby to call this guy on a payphone – all during the day – to figure out what was going on.
“By 3:45 p.m., I had sold the entire 100 shares and lost what, to me at the time, was a pretty big amount – especially considering the fact that I had to sell stuff just to GET the money that I was using to BUY this dog of an IPO. All the stuff we tell people NOT to do? I did it. What a waste.”
What is one piece of advice you would give to new investors?
“Save as much as you can for as long as you can. Nothing else works or matters – not a retirement plan, not any investment – unless you save.”
If you would like access to the same valuable advice, please reach out to a local advisor with The Mutual Fund Store for a personal consultation.
SOURCE: Expert Investing Insight – Read entire story here.
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