5 Don’ts of Investing That Will Minimize Your Risk of Loss

Don’t put all of your eggs in one basket

Warren Buffett is one of the investment experts who have always stressed on the importance of putting your money in different investment vehicles.

Instead of investing in only one type of investments, say, real estate investment trust (REIT), spread it around. Annuities are considered a reasonable option but investing all of your money in it means you’ll have limited liquidity, not to mention the high fees.

Similarly, focus on building a balance between after-tax money and tax-deferred accounts, such as your 401(k) and IRA. If you put all of your money in tax-deferred accounts you’ll find yourself in trouble when you take out substantial amounts and the taxes become due.

Instead, consider investing your money with a reputable firm or advisor who handles a range of investments.

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