Top Ten Personal Finance Mistakes - Part 9
By Eugene S. Melchionne, Connecticut Bankruptcy Attorney on Aug 8, 2007 in Connecticut
Diversify your investments for the future. Financial advisors will always tell you not to put your eggs in one basket. One only need to look at 1929 to see the effect of investing too heavily in the stock market had on investors. This pattern is repeated throughout history.
Currently we are seeing a huge contraction in the mortgage industry. Just this week another lender, American Home Mortgage Corp. filed for bankruptcy in Delaware adding to more than 80 such companies that have gone out of business or been acquired since November of last year. Once considered a safe investment, many retirement funds and overseas investors are going to suffer huge loses this year. While you might not be an investor to that degree, one only has to remember the Savings and Loan failures of the early ’90s to know that it is not a good idea to keep all of your bank accounts in the same bank.
The same is true for saving for your retirement or any other financial goal. Do not put all of your money in company stock. Do not put your bank accounts in the same bank that you have loans with. Do not confuse convenience with safety.
So continue on to Part 10, Why Emotional Decisions are a Bad Thing.
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