You may actually be able to bypass so many bad investments if you know what you need to look out for. You can also make it way easier on yourself by trying to look into the various scenarios that you might face as well so keep that in mind.


Surrender Charges

The first thing that you need to do is try and avoid any investments that might come with surrender charges. Investments that come with surrender charges such as annuities that are sold by brokers, or even B-mutual funds tend to limit flexibility and this is the last thing that you need. Of course, it’s important that you try and avoid health-based insurance. After all, health costs can be expensive and although some insurance investments will give you some amount of charges, you may be able to get penalty-free access to your money so it’s important that you keep things like this in mind as much as possible. If you want to make a good investment and need some capital then read a detailed review at to find a good option.

Be Cautious of Limited Marketability

Some investments are really not as easy to get out of as you might think. These are otherwise known as illiquid assets. Illiquid essentially means that they are a security, or even an asset but they do not have much trading volume. Some examples of this include partnerships, private placements, private equity investments or even REITs. If you have far too much money in non-liquid investments then you won’t have an easy level of access to your funds. A lot of alternative investments promise you very high returns, but you need to keep in mind that you may end up losing almost all of your investment if something was to go wrong. If you want to help yourself here, then it is a good idea for you to diversify as much as you can. When you do this, you will soon find that it is easier than ever for you to get a positive result.

Avoid Investments that Need a Commission Upfront

Investments that charge a very high commission upfront can be bad investments. The main reason for this is because your advisor won’t have any incentive to provide you with the service or education you are looking for because they already have what they want. Some examples of this include share mutual funds, variable universal life insurance policies or anything else similar. When you pay an upfront commission, you will have zero incentive for the ongoing service and neither will your advisor.

Avoid Confusion

A good investment can very easily turn into a bad one if you don’t know how it works. When you do not have a good level of understanding or knowledge you are far more likely to make a bad decision. If you think that an investment sounds complicated, then there’s a high chance that it actually is and this means that you should try and avoid it as much as you possibly can. If you want some help then it is always wise to hire a financial advisor.

займ на карту
More in Investing (2 of 17 articles)

Many personal finance experts preach a message of fear that encourages a debt aversion. You’ve probably heard or read stories about folks who ended in a financial rut because they ...