Friday Financial Foul Ups: Uncorrected Investment Decisions

This week’s Friday Financial Foul Up will feature a post from Sarah of Paranoid Asteroid. She is a great person that I’m thrilled I’ve gotten to know since February’s Blogger Happy Hour. I hope you enjoy her good spirited post and her final remark may be the best thing I have read all month.  Enjoy.

_____

I am the sort of person who learns best by doing, messing up, and doing differently. My first car purchase taught me not to accept dealer financing. My first apartment taught me not to fall in love with a place so much that you ignore all of the drawbacks (I lived there for 4 years, and even by the end couldn’t remember that running the toaster and the dryer at the same time would blow the fuses). My first time making Chicken & Stars taught me that you’re supposed to add water to soups marked “condensed.”

So when Brian asked me to write a Friday Financial Foul Up, I answered honestly, “I don’t make mistakes.” I just learn.

Most of my lessons come with minimal consequences. I probably paid a few hundred dollars extra in interest on the car loan before I wised up and refinanced through my credit union. I loved my apartment, and since my now-husband moved in shortly after I did, the only additional costs were a few extra calls to the landlord or running to the garage to reset the fuses. Adding water to the soup after the fact worked just as well as adding it in the beginning.

There is one mistake, however, that still bothers me, mostly because I’ve never gotten around to correcting it.

The Situation

I opened my IRA in 2007 under pressure from my father, from every financial website I read, and from my boss. The only problem was that I had no idea how to invest. Target retirement funds weren’t widely available, and Robert Kiyosaki had written an article about how mutual fund fees would eat up all of your returns.

Where I Fouled Up

Luckily, I had a subscription to Money Magazine! And they had an article on The Best Stocks To Buy NOW! Inexplicably, I decided to pick one company from this list and buy a few shares of their stock. To this day, I’m not sure why I thought that was a good idea. The company was General Electric, and if I’m not sure why I only picked one company, I’m 63857 times less sure why I chose GE. I’ve harbored a dislike of GE ever since they didn’t offer me a job in 2005.

I bought 50 shares at $36.89, for a total of $1844.50, on February 28, 2007. Today they are worth $18.30 per share, for a total of $915. That means I’ve lost $920.50, at least on paper. That’s over 50%! What’s worse is that I’m still holding onto those shares for all the stupid emotional reasons people always hold onto losing stocks. This mistake could even end up costing me more, and yet I feel powerless to extricate myself from the situation.

What I Learned

It sounds so simple now, but even the finance “experts” can’t predict the future. Blindly accepting recommendations from anyone without doing your own research will probably leave you shaking your fist in impotent rage at Money Magazine every time you check your account balance.

At the very least, I can satisfy myself knowing that GE is still down from their 2005 value, while my current company is up by $10 in the same period. People might argue that hiring one person couldn’t affect stock prices that much, but I know better.

———-

Do you like this series? Check Out The Previous Foul Ups:

Foul Up #26 – Brian (My Next Buck) – Final Four Weekend
Foul Up #25 – Peter (Bible Money Matters) – Being Ignorant of Your Finances Means Money Lost
Foul Up #24 – Daniel (Sweating the Big Stuff) – Paying for Value
Foul Up #23 – Kristin (Instigationology) – Giant Elves and the $86 Movie I Never Finished
Foul Up #22 – Kyle (Suburban Dollar) – Being Down on High Interest Checking Accounts
Foul Up #21 – Brian (My Next Buck) – Pale Dude’s Shouldn’t Go Tanning
Foul Up #20 – Shawanda (You Have More Than You Think) – How Financial Knowledge Can Hurt
Foul Up #19 – Christine (Money Funk) – Love Can Hurt Your Financial Situation
Foul Up #18 – Clayton (Just Good Financial Advice) – Trying to Get Rich Quick
Foul Up #17 – Craig (Budget Pulse) – Black Friday Purchase Becomes a Dust Collector
Foul Up #16 – Jesse (PF Firewall) – The Fine Print of Rental Properties
Foul Up #15 – Paul (Fiscal Geek) – Unsuccessfully Restoring American Muscle
Foul Up #14 – Mrs. Micah (Finance For a Freelance Life) – How Getting Married Wrecked My Finances
Foul Up #13 – Evan (My Journey To Millions) – Speeding Up Payments on Loan Interest, Not Principal
Foul Up #12 – Elle (Couple Money) – Stretching Yourself to have a Comparable Car to Your Friends
Foul Up #11 – Revanche (A Gai Shan Life) – Sibling Bailouts Cost More than Just Money
Foul Up #10 – Brad (Enemy Of Debt) – There’s Nothing Interesting About Interest-Only Loans
Foul Up #9 – Jason (Redeeming Riches) – Buying a Car with a Balloon Payment at the End
Foul Up #8 – David (Money Under 30) – Being Too Eager to “Move Out” and “Move Up”
Foul Up #7 – Matt (Debt Free Adventure) – Upside Down and Paying The Price
Foul Up #6 – Brian (MyNextBuck) – Overdue Books Prevent Me From Renting an Apt
Foul Up #5 – Kelly Whalen (The Centsible Life) – Poorly Planned Vehicle Purchase Costs $24,000
Foul Up #4 – Stephanie (Poorer Than You) – Signed My Life Away at Age 17
Foul Up #3 – Deliver Away Debt – How I Wasted Over $10K and 11 Months
Foul Up #2 – Brian (MyNextBuck) – Quick Fixes to Weight Loss
Foul Up #1 – Brian (MyNextBuck) – How I Didn’t Earn $3000 in Free Money

216 Responses to Friday Financial Foul Ups: Uncorrected Investment Decisions
  1. harga suzuki bali
    April 20, 2018 | 6:41 am

    Hi there. I found your blog via Google whilst looking for a comparable subject, your web site got here up. It appears good. I have bookmarked it in my google bookmarks to come back then.

  2. Health and Fitness
    April 20, 2018 | 7:09 am

    Keep working ,impressive job!

  3. News
    April 20, 2018 | 7:24 am

    great issues altogether, you simply won a brand new reader. What might you recommend in regards to your submit that you just made a few days ago? Any positive?

  4. Health and Fitness
    April 20, 2018 | 8:37 am

    Hello my family member! I wish to say that this article is awesome, great written and include approximately all vital infos. I’d like to peer extra posts like this.

  5. internet gratis
    April 20, 2018 | 9:36 am

    Hey there. I found your blog by way of Google at the same time as looking for a comparable matter, your web site got here up. It seems to be great. I’ve bookmarked it in my google bookmarks to visit then.

  6. www.nareja.com
    April 20, 2018 | 10:01 am

    Hiya, I’m really glad I’ve found this information. Nowadays bloggers publish just about gossip and net stuff and this is actually frustrating. A good blog with interesting content, that is what I need. Thanks for making this web site, and I’ll be visiting again. Do you do newsletters by email?

  7. ceme online
    April 20, 2018 | 10:18 am

    Hello there. I discovered your site by the use of Google whilst looking for a comparable matter, your website got here up. It appears to be good. I have bookmarked it in my google bookmarks to come back then.

  8. Health and Fitness
    April 20, 2018 | 11:45 am

    I was just looking for this info for a while. After 6 hours of continuous Googleing, at last I got it in your web site. I wonder what is the lack of Google strategy that don’t rank this kind of informative web sites in top of the list. Normally the top web sites are full of garbage.

  9. Health and Fitness
    April 20, 2018 | 1:07 pm

    Excellent read, I just passed this onto a friend who was doing some research on that. And he just bought me lunch since I found it for him smile So let me rephrase that: Thanks for lunch! “We have two ears and one mouth so that we can listen twice as much as we speak.” by Epictetus.

  10. News
    April 20, 2018 | 7:00 pm

    I simply wanted to write a quick message to express gratitude to you for those fantastic tips and hints you are giving out on this website. My rather long internet investigation has at the end of the day been rewarded with excellent content to write about with my pals. I would repeat that we readers actually are unquestionably lucky to exist in a perfect network with very many marvellous professionals with valuable things. I feel really fortunate to have encountered your entire website page and look forward to really more exciting minutes reading here. Thanks a lot once more for everything.

  11. Health and Fitness
    April 20, 2018 | 7:36 pm

    Magnificent goods from you, man. I have understand your stuff previous to and you’re just too excellent. I really like what you’ve acquired here, certainly like what you’re stating and the way in which you say it. You make it enjoyable and you still care for to keep it wise. I can’t wait to read far more from you. This is actually a great web site.

  12. Health and Fitness
    April 20, 2018 | 8:21 pm

    Thanks a lot for sharing this with all of us you really realize what you are speaking about! Bookmarked. Kindly also visit my site =). We may have a hyperlink alternate contract between us!

  13. Agen Domino 99
    April 20, 2018 | 10:01 pm

    Awesome write-up. I am a normal visitor of your blog and appreciate you taking the time to maintain the nice site. I’ll be a regular visitor for a really long time.

  14. Health and Fitness
    April 20, 2018 | 11:30 pm

    Its like you read my mind! You appear to know so much about this, like you wrote the book in it or something. I think that you could do with some pics to drive the message home a little bit, but other than that, this is fantastic blog. An excellent read. I’ll definitely be back.

  15. Domino QQ
    April 21, 2018 | 12:07 am

    Hiya, I’m really glad I have found this info. Nowadays bloggers publish just about gossip and web stuff and this is actually irritating. A good website with exciting content, that’s what I need. Thanks for making this web-site, and I will be visiting again. Do you do newsletters by email?

  16. Daftar PokerPelangi
    April 21, 2018 | 12:12 am

    Hiya, I am really glad I have found this info. Nowadays bloggers publish just about gossip and internet stuff and this is really frustrating. A good website with interesting content, this is what I need. Thank you for making this web site, and I will be visiting again. Do you do newsletters by email?

Leave a Reply


Wanting to leave an <em>phasis on your comment?

Trackback URL http://mynextbuck.com/uncorrected_investment_decisio/trackback/

Friday Financial Foul Ups: Uncorrected Investment Decisions

This week’s Friday Financial Foul Up will feature a post from Sarah of Paranoid Asteroid. She is a great person that I’m thrilled I’ve gotten to know since February’s Blogger Happy Hour. I hope you enjoy her good spirited post and her final remark may be the best thing I have read all month.  Enjoy.

_____

I am the sort of person who learns best by doing, messing up, and doing differently. My first car purchase taught me not to accept dealer financing. My first apartment taught me not to fall in love with a place so much that you ignore all of the drawbacks (I lived there for 4 years, and even by the end couldn’t remember that running the toaster and the dryer at the same time would blow the fuses). My first time making Chicken & Stars taught me that you’re supposed to add water to soups marked “condensed.”

So when Brian asked me to write a Friday Financial Foul Up, I answered honestly, “I don’t make mistakes.” I just learn.

Most of my lessons come with minimal consequences. I probably paid a few hundred dollars extra in interest on the car loan before I wised up and refinanced through my credit union. I loved my apartment, and since my now-husband moved in shortly after I did, the only additional costs were a few extra calls to the landlord or running to the garage to reset the fuses. Adding water to the soup after the fact worked just as well as adding it in the beginning.

There is one mistake, however, that still bothers me, mostly because I’ve never gotten around to correcting it.

The Situation

I opened my IRA in 2007 under pressure from my father, from every financial website I read, and from my boss. The only problem was that I had no idea how to invest. Target retirement funds weren’t widely available, and Robert Kiyosaki had written an article about how mutual fund fees would eat up all of your returns.

Where I Fouled Up

Luckily, I had a subscription to Money Magazine! And they had an article on The Best Stocks To Buy NOW! Inexplicably, I decided to pick one company from this list and buy a few shares of their stock. To this day, I’m not sure why I thought that was a good idea. The company was General Electric, and if I’m not sure why I only picked one company, I’m 63857 times less sure why I chose GE. I’ve harbored a dislike of GE ever since they didn’t offer me a job in 2005.

I bought 50 shares at $36.89, for a total of $1844.50, on February 28, 2007. Today they are worth $18.30 per share, for a total of $915. That means I’ve lost $920.50, at least on paper. That’s over 50%! What’s worse is that I’m still holding onto those shares for all the stupid emotional reasons people always hold onto losing stocks. This mistake could even end up costing me more, and yet I feel powerless to extricate myself from the situation.

What I Learned

It sounds so simple now, but even the finance “experts” can’t predict the future. Blindly accepting recommendations from anyone without doing your own research will probably leave you shaking your fist in impotent rage at Money Magazine every time you check your account balance.

At the very least, I can satisfy myself knowing that GE is still down from their 2005 value, while my current company is up by $10 in the same period. People might argue that hiring one person couldn’t affect stock prices that much, but I know better.

———-

Do you like this series? Check Out The Previous Foul Ups:

Foul Up #26 – Brian (My Next Buck) – Final Four Weekend
Foul Up #25 – Peter (Bible Money Matters) – Being Ignorant of Your Finances Means Money Lost
Foul Up #24 – Daniel (Sweating the Big Stuff) – Paying for Value
Foul Up #23 – Kristin (Instigationology) – Giant Elves and the $86 Movie I Never Finished
Foul Up #22 – Kyle (Suburban Dollar) – Being Down on High Interest Checking Accounts
Foul Up #21 – Brian (My Next Buck) – Pale Dude’s Shouldn’t Go Tanning
Foul Up #20 – Shawanda (You Have More Than You Think) – How Financial Knowledge Can Hurt
Foul Up #19 – Christine (Money Funk) – Love Can Hurt Your Financial Situation
Foul Up #18 – Clayton (Just Good Financial Advice) – Trying to Get Rich Quick
Foul Up #17 – Craig (Budget Pulse) – Black Friday Purchase Becomes a Dust Collector
Foul Up #16 – Jesse (PF Firewall) – The Fine Print of Rental Properties
Foul Up #15 – Paul (Fiscal Geek) – Unsuccessfully Restoring American Muscle
Foul Up #14 – Mrs. Micah (Finance For a Freelance Life) – How Getting Married Wrecked My Finances
Foul Up #13 – Evan (My Journey To Millions) – Speeding Up Payments on Loan Interest, Not Principal
Foul Up #12 – Elle (Couple Money) – Stretching Yourself to have a Comparable Car to Your Friends
Foul Up #11 – Revanche (A Gai Shan Life) – Sibling Bailouts Cost More than Just Money
Foul Up #10 – Brad (Enemy Of Debt) – There’s Nothing Interesting About Interest-Only Loans
Foul Up #9 – Jason (Redeeming Riches) – Buying a Car with a Balloon Payment at the End
Foul Up #8 – David (Money Under 30) – Being Too Eager to “Move Out” and “Move Up”
Foul Up #7 – Matt (Debt Free Adventure) – Upside Down and Paying The Price
Foul Up #6 – Brian (MyNextBuck) – Overdue Books Prevent Me From Renting an Apt
Foul Up #5 – Kelly Whalen (The Centsible Life) – Poorly Planned Vehicle Purchase Costs $24,000
Foul Up #4 – Stephanie (Poorer Than You) – Signed My Life Away at Age 17
Foul Up #3 – Deliver Away Debt – How I Wasted Over $10K and 11 Months
Foul Up #2 – Brian (MyNextBuck) – Quick Fixes to Weight Loss
Foul Up #1 – Brian (MyNextBuck) – How I Didn’t Earn $3000 in Free Money

216 Responses to Friday Financial Foul Ups: Uncorrected Investment Decisions
  1. harga suzuki bali
    April 20, 2018 | 6:41 am

    Hi there. I found your blog via Google whilst looking for a comparable subject, your web site got here up. It appears good. I have bookmarked it in my google bookmarks to come back then.

  2. Health and Fitness
    April 20, 2018 | 7:09 am

    Keep working ,impressive job!

  3. News
    April 20, 2018 | 7:24 am

    great issues altogether, you simply won a brand new reader. What might you recommend in regards to your submit that you just made a few days ago? Any positive?

  4. Health and Fitness
    April 20, 2018 | 8:37 am

    Hello my family member! I wish to say that this article is awesome, great written and include approximately all vital infos. I’d like to peer extra posts like this.

  5. internet gratis
    April 20, 2018 | 9:36 am

    Hey there. I found your blog by way of Google at the same time as looking for a comparable matter, your web site got here up. It seems to be great. I’ve bookmarked it in my google bookmarks to visit then.

  6. www.nareja.com
    April 20, 2018 | 10:01 am

    Hiya, I’m really glad I’ve found this information. Nowadays bloggers publish just about gossip and net stuff and this is actually frustrating. A good blog with interesting content, that is what I need. Thanks for making this web site, and I’ll be visiting again. Do you do newsletters by email?

  7. ceme online
    April 20, 2018 | 10:18 am

    Hello there. I discovered your site by the use of Google whilst looking for a comparable matter, your website got here up. It appears to be good. I have bookmarked it in my google bookmarks to come back then.

  8. Health and Fitness
    April 20, 2018 | 11:45 am

    I was just looking for this info for a while. After 6 hours of continuous Googleing, at last I got it in your web site. I wonder what is the lack of Google strategy that don’t rank this kind of informative web sites in top of the list. Normally the top web sites are full of garbage.

  9. Health and Fitness
    April 20, 2018 | 1:07 pm

    Excellent read, I just passed this onto a friend who was doing some research on that. And he just bought me lunch since I found it for him smile So let me rephrase that: Thanks for lunch! “We have two ears and one mouth so that we can listen twice as much as we speak.” by Epictetus.

  10. News
    April 20, 2018 | 7:00 pm

    I simply wanted to write a quick message to express gratitude to you for those fantastic tips and hints you are giving out on this website. My rather long internet investigation has at the end of the day been rewarded with excellent content to write about with my pals. I would repeat that we readers actually are unquestionably lucky to exist in a perfect network with very many marvellous professionals with valuable things. I feel really fortunate to have encountered your entire website page and look forward to really more exciting minutes reading here. Thanks a lot once more for everything.

  11. Health and Fitness
    April 20, 2018 | 7:36 pm

    Magnificent goods from you, man. I have understand your stuff previous to and you’re just too excellent. I really like what you’ve acquired here, certainly like what you’re stating and the way in which you say it. You make it enjoyable and you still care for to keep it wise. I can’t wait to read far more from you. This is actually a great web site.

  12. Health and Fitness
    April 20, 2018 | 8:21 pm

    Thanks a lot for sharing this with all of us you really realize what you are speaking about! Bookmarked. Kindly also visit my site =). We may have a hyperlink alternate contract between us!

  13. Agen Domino 99
    April 20, 2018 | 10:01 pm

    Awesome write-up. I am a normal visitor of your blog and appreciate you taking the time to maintain the nice site. I’ll be a regular visitor for a really long time.

  14. Health and Fitness
    April 20, 2018 | 11:30 pm

    Its like you read my mind! You appear to know so much about this, like you wrote the book in it or something. I think that you could do with some pics to drive the message home a little bit, but other than that, this is fantastic blog. An excellent read. I’ll definitely be back.

  15. Domino QQ
    April 21, 2018 | 12:07 am

    Hiya, I’m really glad I have found this info. Nowadays bloggers publish just about gossip and web stuff and this is actually irritating. A good website with exciting content, that’s what I need. Thanks for making this web-site, and I will be visiting again. Do you do newsletters by email?

  16. Daftar PokerPelangi
    April 21, 2018 | 12:12 am

    Hiya, I am really glad I have found this info. Nowadays bloggers publish just about gossip and internet stuff and this is really frustrating. A good website with interesting content, this is what I need. Thank you for making this web site, and I will be visiting again. Do you do newsletters by email?

Leave a Reply


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Trackback URL http://mynextbuck.com/uncorrected_investment_decisio/trackback/