This article<\/a> can help.)<\/p>\n\u201cIn markets, the primary risk today is the \u2018circularity\u2019 of AI finance, where billions rotate in a closed loop between chip makers, cloud providers and LLM designers, effectively subsidizing each other\u2019s growth while masking the true level of external customer demand. We remain long-term believers in the technology\u2019s potential, but we are concerned that investors are paying extreme multiples for companies whose specific monetization paths remain unproven.\u201d<\/p>\n
Hype-driven stocks and gold \u2014 Jason Bernat, president and CEO of American Financial Services<\/p>\n
\u201cThere are stocks I wouldn\u2019t buy because you are chasing short-term hype. I would advise against buying something because of a social media buzz or headlines and not fundamentals. <\/p>\n
Last year, gold returned around 65%. Today, people want to buy any gold stock. While it may continue to grow in the short-term, these same clients aren\u2019t thinking long-term. Just because there was a 60% return last year doesn\u2019t mean it\u2019s going to happen again.\u201d<\/p>\n
Certain annuities and REITs \u2014 Ronnie Thompson, investment adviser representative and owner of True North Advisors<\/p>\n
\u201cAnnuities can be great tools for accomplishing specific goals. They can provide protection and guarantees that include interest and\/or income. They can also be complex and hinder liquidity or access to some or all of the funds for a period of specified time. If the wrong person purchases these vehicles for the wrong reasons, they can be considered a waste of money. <\/p>\n
Another investment I see people buy incorrectly or for the wrong reasons are Real Estate Investment Trusts (REITs). These investments are positioned as an opportunity for investors to participate in the interest earning potential of real estate without the downside of the costs in time and expenses for the management of it. These investments, like many investments, come with the risk of loss, can be extremely illiquid, and can be difficult for the investor to get their money out.\u201d<\/p>\n
Single-residence rental real estate \u2014 Preston D. Cherry, CFP, founder and wealth adviser at Concurrent Wealth<\/p>\n
\u201cSingle-residence rental real estate is often overrated for high-income earners who want real estate exposure without being active owners. The financial upside tends to be highlighted, while the emotional, managerial, time and risk costs of ownership are understated. Even with property managers, single-family rentals require oversight, tolerance for disruption, and ongoing decision-making that can quietly erode both returns and quality of life for busy professionals.\u201d <\/p>\n
Investments with high fees \u2014 Jillian Stephenson, CPA and assistant teaching professor at Carnegie Mellon University\u2019s Heinz College<\/p>\n
\u201cIn terms of stocks and investments, the biggest waste of money is paying high fees for average results. This could be fees to financial advisers or fees that are charged within funds such as mutual funds, ETF\u2019s, etc. You have to consider the fees that you are paying before you invest and determine if there are other options out there with potentially lower fees and similar results.\u201d<\/p>\n
Hype-driven investments \u2014 Ryan Haiss, certified financial planner at Flynn Zito Capital Management<\/p>\n
\u201cThe biggest waste I see is chasing hype-driven investments or the stock that is up the most because a friend, co-worker or headline made it sound compelling. By the time most people hear about it, a lot of the gains are already gone. When volatility hits, those same investors tend to sell out of fear, locking in losses. That buy high, sell low cycle is one of the most common ways people hurt their returns. <\/p>\n
A disciplined portfolio built around clear goals, time horizon, and risk tolerance tends to deliver far better outcomes. Boring, diversified strategies usually outperform emotional decision making over the long run.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Many of us waste money on some of our investments \u2014 and may not even realize it. Broadly,…\n","protected":false},"author":2,"featured_media":415169,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[1340,133834,84,7409,4176,4174,4175,56,54,55],"class_list":{"0":"post-415168","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-banking","9":"tag-banking-credit","10":"tag-business","11":"tag-credit","12":"tag-finance","13":"tag-personal-finance","14":"tag-personalfinance","15":"tag-uk","16":"tag-united-kingdom","17":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/415168","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=415168"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/415168\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/415169"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=415168"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=415168"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=415168"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}