Investing For Dummies, 7th Edition

Chapter 20

Ten Investing Obstacles to Conquer

In This Chapter

Navigating investing road bumps

Committing to picking up better investing habits

Just as with raising children or as in one’s career, “success” with personal investing is in the eye of the beholder. In my work as a financial counselor, instructor, and writer, I’ve come to define a successful investor as someone who, with a modest commitment of time, develops an investment plan to accomplish financial and personal goals and who earns competitive returns given the risk he’s willing to accept.

In this chapter, I point out ten common obstacles that may keep you from being successful and fully realizing your financial goals. I also share tips and advice for overcoming those obstacles on the road to investing success.

Trusting Authority

Some investors assume that an advisor is competent and ethical if she has a lofty title (financial consultant, vice president, and so on), dresses well, and works in a snazzy office. Unfortunately, such accessories are often indicators of salespeople — not objective advisors — who recommend investments that will earn them big commissions that come out of your investment dollars.

If you overtrust an advisor, you may not research and monitor your investments as carefully as you should. Figuring ...