Investing Advice

Written by Jeremy Horelick
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Everyone from your personal broker to the Motley Fool has investing advice to give, which makes it exceedingly difficult to know whom to trust. The most important thing to remember is that no one has a monopoly on the truth. Sometimes (often) hedge fund managers and mutual fund experts are flat-out wrong.

That said, there are certain principles of investing that one should ignore only at his own peril. Keeping a diversified portfolio is one such axiom. Even if your high-risk pork bellies are currently going gangbusters, it's not a bad idea to keep some municipal bonds or T-notes on hand as well.

Smart Investing Advice

Another staple of good investing advice is to pay off your high-interest credit cards before anything else. It does you no good to invest in a two-percent CD if you carry a 19-percent APR balance from month to month on your credit card. Similarly, if you have other high-interest loans from creditors, pay those off before planning some kind of saving strategy. In fact, you may even need such a strategy to help you pay down your current debts.

A final piece of investing advice that can carry you far is this: the advice you follow should suit your natural instincts and your ultimate goal. If you're squirreling away funds for a down payment on a home, investing in a risky tech stock is a poor move. Along those same lines, if you're naturally risk-averse (as opposed to risk-neutral), stick with investments that hedge against losses. In the event you can afford to lose more, it may be worth it to take larger risks to receive bigger rewards.

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