What is the best investing advice you've ever received?

Answer 1

Pay yourself first! before you pay anyone else. Treat it like a monthly bill. otherwise you will be 50 before a flash of your eyes and you will have nothing!

Answer 2

The 19th century economist Adam Smith wrote that it is our moral obligation to become wealthy enough to support not just ourselves, but those we love. This prevents them, and you, from becoming a drain on the greater society because you have not strived to make more of yourself.

In this light, do everything you can to improve your position financially so that you can help those around you more than you can now.

Who knew that becoming wealthy was not just a good way to live, but the moral thing to do?! :)

As far as the one thing that I learned that would most appropriately teach me to invest it's this:

Every transaction has a spread. Take the expected percentage of return and make sure that it is greater than the percentage that you are paying for the money to invest in that asset. If it isn't, pay off the debt!

Ex1. Stocks=>9-12%, Home Equity Loan=>-7%. This gives you a net 2-5% and therefore is worth doing.

Ex2. New Car=0 to -20%, Car Loan =>-7%. You net -7 to -27%! You should have paid cash for the car instead!

Answer 3

When I was 24 I had a friend that wanted to sell her home. I had no money to buy it but said I would. All she wanted was the down payment she'd put down. I feel like God put me there for that purpose.

So I borrowed the money and bought that house. Now I could have sold it myself and made a profit right there and then. But before I did anything I talked with my "dad". He said either sell it quickly or rent it and sit on it for awhile. So we prayed about it and the renters stayed in that home long enough (8yrs) for the price to go up and up. We sold that home and paid cash for the one we now live in.

I believe investing in real estate to be the best thing. I've bought other property. While others paid the bill *renters*. I am a low priced renter, in that I mean I do not charge what the going price is. I'd feel terrible if I did. And I still make a good income and I sleep well at night.

Best advice was to sit on that property. Thanks Dad!!!

God started me on a long road of buying, building, renting, selling. It's a sweet income.

Answer 4

paying yourself first is an excellent answer if this question pertained to personal finance. it is great advice, but not the best investing advice as it doesnt really get you anywhere with investing.

my biggest piece is a set of four steps and comes from experience and nobody else: do your research, ask questions, be skeptical, and trust your gut.

Research and skepticism being key. I dont like to go into an investment (whether its a common stock purchase or an angel investment) unless I have done my research to the point where I could feel comfortable answering questions from outsides inquiring about the investment. Skepticism is important because if it sounds to good to be true it usually is. Companies and people don't like to let themselves sound bad. And just remember, everytime you're buying - someone else is selling. Why are they selling? and Why are you buying?

Answer 5

Good advices here.

I like to spell out a couple in detail:

For the market/industry you do not know, diversify to reduce risk. Index Funds are the no-brainer choices.

For the company/industry you _do_ know, concentrate your fire power. As much as you are comfortable with. I am risk-averse so I put 10% of my portfolio on companies that I do know from detailed studies and interviewing people working in it. I also piggy-back ride on Warren Buffet's choices.

Bonds are the so-called cash equivalents. The interest rates on high quality bonds barely outstrip the inflation rate in a good year. The more risk-averse you are, the higher percentage you should hold in cash equivalents. A good example is the billions in cash reserve that Microsoft hold. (to put my opinion in context, I consider the housing market boom in california as simply inflation pushing up real gains - the market looks better than it is)

One more: your house is _not_ an investment. You will have no place to live if you sell the one you live in. Then you end up having to buy another house in the exact same market. So invest in real estate if you are risk averse, want a tangible property, and can flip or rent the extra houses/apartments you buy with borrowed money.

An analogy: your own house is a stock that you buy and hold. Sell if you have no choice and need the equity. The investment properties are the stocks that you buy and sell and that pays you dividends (rental income). And so if you are not sure you want to become an expert in real estate markets, you are better off with REIT (real estate investment trusts) that act like managed portfolios. The same warning about lower return and high fees apply to both types of portfolios.

Answer 6

Beside all advise given by grate peoples here which i found to be sound. My advise is :

"FIRST PAY YOUR TITHES"

1. Please Save as much you can until you are running out of income.
2. Put your saving in Fixed Deposit in any trusted bank only.
3. Funds and Stocks may be advisable if you are willing for some short term profits but in long term no bond or debenture is so much profitable that you risk your money.
4. Invest in Local Area BC. That will keep rotating your money.
5. Invest in Funds and Stocks only with the extra money left after saving.

Answer 7

The best advice I got was to put my money into a managed portfolio. Even though I pay a quarterly fee, that account is far outperforming all my other investments as well as outperforming the market in general. I started saving in my copmany 401K plan 18 years ago and it has been hugely satisfying to watch my portfolio grow each year. You probably won't get rich overnight, but you can accumulate wealth over time.

Answer 8

The best advice I ever got was to invest my time before my money. No one will watch our for your money like you. Read up, take your time and start slowly and diversify. Use what you learn for future investments. Listen to CNBC, read the papers, and buy a book on basic investing. Just remember what I say: Invest your time before your money. And there are NO guarantees. Period.

Answer 9

Invest in the shares of MultiCell Technologies! I took that advice and won big near the end of 2003. It has since retraced all the gains and is now set for another run. MCET.OB With a little patience, you can't lose.

Answer 10

Have you ever thought about investing TIME rather than investing money?Look at successful people what they have done.They had no money when they started any venture.Such as Dell Computer etc..I teach people investing time efficiently to create an income stream.Drop me an email at setuup42yahoo.com
for more information.

Answer 11

I had invested in a tech fund before tech became trash. I lost a lot of money, and I just sat there for a couple of years wondering what to do. I was advised to cut my losses and take the remainder of the money in the tech fund and put it in a diversified capital appreciation fund. I've been watching my money grow ever since.