Kelly Ruggles: Symptoms of bad investment

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For many people, because of poor knowledge and lack of experience, investment is a tricky proposition that is more akin to gambling than anything else. According to Kelly Ruggles, financial planner and educator, there are five main symptoms to bad investments, which are usually easier to detect than the actual cause. This makes it more difficult for them to devise a solution to keep them from losing money and actually start gaining a return on their investments.

The first of these symptoms are doubts. While no one can ever be completely sure of their investments, too much doubt on the part of the investor or his or her advisor is a clear sign that the decisions made were incorrect.

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The second, huge losses, may appear to be natural at first; after all, losses are to be expected from time to time. For Kelly Ruggles, however, it is bad practice to continue investing after large losses.

The third is complexity and confusion. These take the form of investments so complicated and poorly understood that many suspect that it was designed to confound them.

The fourth, broken promises, can be really frustrating; one has the right to be fed up when an advisor gives unrealistic promises while glossing over or whitewashing risks.

The last, unnecessary tax burdens, can be particularly harmful to the investor. This is what happens when the stocks in a mutual fund are periodically sold instead of maintained, accruing taxes in the process.

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More information on the symptoms to look out for while investing can be accessed from Kelly Ruggles’ website.