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There are many industries, commodities and markets to invest in. The problem is that many appear promising but are actually quite the opposite.

The following is a list of investments that often appear lucrative but are usually not so:

  1. Penny stocks. These refer to common shares of small companies. Like the name suggests, they are inexpensive. The catch? Returns are generally poor, and most experts agree that you’re better off keeping your pennies in your wallet.
  2. The allure is great: buy lodging in a favored vacation spot at a locked-in rate and never have to deal with rising hotel costs. However, high annual fees and poor resale values makes this a bad investment. Stay away.
  3. Unless you have a ton of expendable income, do not invest in a boat. Along with the thrill come such high fees as: gas, insurance and maintenance.
  4. A Friend’s New Business. While some such ideas do in fact succeed, these investments are fraught with emotions. Don’t invest in a friend’s idea unless you’re prepared to loss all your money. And the friendship.
  5. Bitcoin and other new online currencies are alluring. But they are considered highly volatile and very risky—not something stable to build a secure retirement on.
  6. Airlines. This commodity has large fixed costs and enormous competition. Airlines often drop their rates to undercut competitors. And a large portion of profits are also linked to external factors, such as oil prices, that are beyond anyone’s control but leave investors at risk.
  7. Buying an expensive home. The temptation is strong, especially given the currently robust real estate market. But if you don’t factor in property taxes and rising maintenance fees, you might be stuck with a home you cannot afford. As you prepare for retirement, you should also consider downsizing or reducing expenses, rather than increasing them.
  8. Movies and entertainment. With production costs often underestimated and distribution uncertain, investing in movies is not recommended. Further, actors, crew members, and other film personnel generally get paid first, with movie investors typically only paid with whatever profits remain, if any.
  9. Expensive college tuition. Paying tuition at an overpriced institutions for a degree in a traditionally low-paying industry usually does not pay off. Consider a state university instead or a college that offers scholarships and lower tuition to reduce or eliminate college loans and increase your returns on your educational investments.

Investing for your future is a serious undertaking. Planning ahead and seeking expert advice is strongly recommended to increase your likelihood of seeing stable and steady growth. A professional can help determine which, if any, trendy investments are worthwhile and which ones to stay away from. Diversification is also key, along with creating and following a realistic budget.

At Silverman Financial, our goal is to protect your investments. We specialize in preparing retirement roadmaps that withstand market swings and grow steadily.