Investing For Dummies®, 5th Edition

Chapter 20. Ten Investing Obstacles to Conquer

In This Chapter

• Putting your faith in experts

• Letting your emotions guide your investment decisions

• Giving up when the market takes a plunge

• Ignoring your financial big picture

Just as with raising children or 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 earns returns commensurate with the risk he's willing to accept.

In this chapter, I point out ten common obstacles that may keep you from fully realizing your financial goals and 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. 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.

Additionally, if you overtrust an advisor, you may not research and monitor your investments as carefully as you should. Figuring that Mr. Vice President is an expert, some investors go along without ever questioning his advice or watching what's going on with their investments.

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