4 Things You Need To Know When Starting A Business

By Kibet Tobias
When making decisions about how to invest, knowledge pays off. You do not want to gamble with your heard-earned money, nor is this the time to try something new and unproven.
There are several steps you can take to figure out where to put your retirement funds. You will be wise to consider them all before you make a decision.
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1. Set realistic expectations
If I had to pick the single largest problem in the investment community, it would be irrational expectations about future returns. This comes from several sources.
The primary one being overconfidence bias. And the second being widespread misunderstanding of real returns. Overconfidence bias leads most of us to believe that we’re better at something than we actually are.
When it comes to investment performance, what do you expect?
This is an important question because your expectations can have a big effect on your behavior and your ability to reach your goals.
To set the right expectations, you first need to determine the return you are trying to achieve – which should be the return you need to reach your goals.
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2. Learn and Get Advice 
The best thing you can do before you decide where to put your retirement money is get educated and seek professional advice.
You can do this by reading books on investment so you understand basic investment concepts, or subscribing to finance magazines.
You could also look for someone who is willing to educate you while also providing planning and investiment services.
3. Make a Long-term Plan and Follow It
Making a plan helps you make smart decisions about how to invest. Your money has a job to do.
It is no longer about how much you can accumulate; instead, it is about delivering a reliable monthly retirement paycheck.
Investing for income is different, and your approach needs to change.
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4. Avoid Big Mistakes
People make mistakes with their investment money because of greed or ignorance. Greed kicks in when you see an investment that you think will deliver above average returns.
Ignorance is a factor when you don’t know what is and is not possible. This makes it easy for someone to talk you into something that is not a good choice for you.
When you understand how investing works, you know that above average returns are not possible over an extended period of time. The saying “pigs get fat, hogs get slaughtered” captures this tendency to get in trouble if you are too greedy. Many investments that appeal to the greed side of you turn out to be frauds.