Starting a Business

Not A Stock Wizard? Avoid These Investing Mistakes, Part 7

Read about the common mistakes people make when dealing with stocks.
1 min read
Opinions expressed by Entrepreneur contributors are their own.

Ain't nothin' like the real thing. Face it: 20 percent average annual returns are not an inalienable right. The past several years have proved to be remarkable, but that doesn't mean the bull will run forever. It also doesn't necessarily mean the market will crash and return to the 6,000 point level. To paraphrase Rudyard Kipling, "He who keeps his head keeps his sanity (and his wallet)." Babe Ruth had one of the finest batting averages in history, and even he struck out sometimes. So if you expect your portfolio to swing for the fences every year, you'll probably end up disappointed.

Know where your advice is coming from. What kind of license does your financial advisor hold? Has your registered representative received a bevy of customer complaints? If possible, speak with him or her in person or over the phone and get a feel for his or her style. Make sure your advisor understands your objectives, and be honest about your goals and expectations. To verify a potential advisor's experience, call the National Association of Securities Dealers Inc. at (800) 289-9999. If you're considering a certified financial planner, call the CFP Board of Standards Inc. at (888) CFP-MARK.

More from Entrepreneur

Brittney's a Certified Financial Planner who can help you manage your business and personal finances and navigate the ups and downs of starting a business.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Create your business plan in half the time with twice the impact using Entrepreneur's BIZ PLANNING PLUS powered by LivePlan. Try risk free for 60 days.

Latest on Entrepreneur