Five Common Investor Errors


NUMEROLOGY
Chasing returns on exotic foreign investments while ignoring growth opportunities in U.S. markets. Many portfolios today are dangerously overloaded with international investments.

Rushing to invest in real estate. If there is a real estate bubble, investors who are over-concentrated and poorly diversified will suffer the most.

Treating hot investment alternatives such as hedge funds or private equity accounts as though they were legitimate asset classes. They arent.

Taking a short-term view of tax avoidance by buying products that ultimately dont end up reducing their tax bill.

Ignoring the true costs of owning an investment. In a flat market investors will have a hard time recouping fees and expenses to make a profit.

Source: Zero Alpha Group, www.zeroalphagroup.com , 2005.

SPONSORED REPORT

A new line of business to consider

Technology assessments may open the door to new engagement opportunities for your firm. What is a technology assessment? How do you perform one? JofA Tech Q&A author J. Carlton Collins shows you in a detailed explanation.

FEATURE

Maximizing the higher education tax credits

A counterintuitive strategy can save taxes by including otherwise excludable scholarships in gross income.