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High earners makeinvestingmistakes, just like everyone else.
More service providers attempt to sell them on the next home run investment.
Watch out for anyone offering an investment that sounds too good to be true.
Even then, stick with investments it’s possible for you to verify.
Start by asking a simple question: Do I know and trust the person recommending an investment?
If not, did someone I know and trust refer me to them?
At a bare minimum, what do verified other investors say about them?
Whats their reputation in the industry, and how long have they been operating?
Only consider investing advice from people youve verified in a compelling way.
And when you try a new investment, follow the old maxim of start low and go slow.
Investments That Make Your Advisor Money Not You
Not all scammers claim to be Nigerian princes.
Some wear business suits and boast letters after their name.
Investment advisors sometimes take advantage of naive clients with deep pockets.
Theres nothing inherently wrong with hiring an investment advisor to manage your portfolio.
Some may even be worth paying 0.5% to 1% as an annual fee.
Watch out for any advisors who make a run at pitch you on picking stocks or beating the market.
Dont know where to start?
Hubris When the Market Does Well
Successful people didnt get that way by being fools.
But success and cleverness in your career doesnt automatically make you a clever investor.
The biggest red flag in my experience is ego.
I always tell my clients, Hubris is your nemesis.'
Just because the market and your investments do well doesnt make you an expert.
Panic When the Market Falls
Greed drives poor buying decisions.
Fear drives poor selling decisions.
Sometimes the stock market falls 50% or more, and fast.
It can instill terror in otherwise calm investors.
But wise investors stay the course and dont panic sell.
Only invest money in stocks that it’s possible for you to stomach seeing fall in value.
Put money that you cant bear to see dip into less volatile investments.
Overconcentration
Your mother always told you not to put all your eggs in one basket.
Many previous crypto millionaires HODLed too long and then got wiped out.
Or growth stock investors didnt diversify into cyclical and suffered a crash right before retirement.
For that matter, many successful employees get stock options from their companies.
But over time, they make up a huge percentage of their net worth.
If that company goes under, they lose not just their job but a massive portion of their wealth.
As you build wealth, consider expanding your assets to include real estate and private investments.
Even if you are, many of these programs come with hefty risks.
Fraudulent agents, unverified investment projects and political instability pose significant risks to high-net-worth individuals.
You just need a residence permit, which many countries offer relatively easily.
Millionaires have more to lose than the average person.
Earning wealth makes a great first step now you oughta protect and keep it.
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