1. Make sure their own funds
You must understand where their money is invested and why. You can rely on consultants, but at the end of the day, you have the results, not them.
2. DO NOT RELY ON AN INVESTOR
Thank God not everyone is Bernard Madoff, but most of the best and brightest of Wall Street lost 40% or more this year.
3. DO NOT INVEST IN SOMETHING THAT DOES NOT UNDERSTAND
For years I refused to recommend the shares of Fannie Mae and Freddie Mac for this reason, despite the efforts of various market sources.
4. EXPERTS ALSO FAIL
Take all the predictions of experts with a pinch of salt. Some economists predicted successfully 12 of the last four recessions, but some were wrong.
5. His grandmother was right: SAVE
A penny saved is a penny earned. In an economy where it is easier to borrow $ 10,000 to find an electrician, this is a problem.
6. Avoid unnecessary risks
Most investment mistakes are usually those that you take that and not lost.
