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There are a ton of companies today that offer stock in the company as part of their employee 401 K plans. Owning stock in the company you work for can be an extremely risky deal and can leave you with devastating losses. The reason this is such a bad idea is that if your company collapses and goes out of business you’ve lost everything. You’ve lost your primary source of income as well as losing all your retirement and cash you invested in stock. If you do own stock in your company it should be no more than 10% of your portfolio.

Do your really buy into cold calls and invest in whatever get-rich-quick gimmick they are trying to sell? Well think about it. If they were so desperate to call you to make you rich, doesn’t that make you wonder why the phone call guy isn’t already vacationing at the beach? The caller is a stranger and has no idea what your financial position is or what kind of goals you have. They don’t know if you are high or low risk or whatever other characteristics you have when it comes to your money. Stop giving into someone pleading you to join his or her new plan. Instead just ask for the material to be sent by mail so you have something to really investigate. Better yet, hang up on them so your not pressured into a scheme you don’t understand.

If there is one piece of advice that the beginning investor can take to heart, it is the fact that learning to invest your own money will make a world of difference. Even if you are wealthy enough to hire a financial advisor, it is important to understand where your money is going and how it can grow for you.

Instead of paying a financial advisor to take your money and play the game of investment alone, try attending a few college courses on investing and finances. You will be able to learn more in a few semesters than you ever thought possible and then play an active part in your money investing.