Who needs a pyramid scheme or a crooked money manager when you can lose money in the stock market all by yourself. If you want to help curb your loss potential, avoid these 10 strategies.

1. Go with the herd. If everyone else is buying it, it must be good, right? Wrong. Investors tend to do what everyone else is doing and are overly optimistic when the market goes up and overly pessimistic when the market goes down. For instance, in 2008, the largest monthly outflow of U.S. domestic equity funds occurred after the market had fallen over 25% from its peak. And in 2011, the only time net inflows were recorded was before the market slid over 10%.1

2. Put all of your bets on one high-flying stock. If only you had invested all your money in Apple 10 years ago, you’d be a millionaire today. Perhaps, but what if, instead, you had invested in Enron, Conseco, CIT, WorldCom, Washington Mutual, or Lehman Brothers? All were high flyers at one point, yet all have since filed for bankruptcy, making them perfect candidates for the downwardly mobile investor.

3. Buy when the market is up. If the market is on a tear, how can you lose? Just ask the hordes of investors who flocked to stocks in 1999 and early 2000 — and then lost their shirts in the ensuing bear market.

4. Sell when the market is down. The temptation to sell is always highest when the market drops the furthest. And it’s what many inexperienced investors tend to do, locking in losses and precluding future recoveries.

5. Stay on the sidelines until markets calm down. Since markets almost never “calm down,” this is the perfect rationale to never get in. In today’s world, that means settling for a minuscule return that may not even keep pace with inflation.

6. Buy on tips from friends. Who needs professional advice when your new buddy from the gym can give you some great tips? If his stock suggestions are as good as his abs workout tips, you can’t go wrong.

7. Rely on the pundits for advice. With all the experts out there crowding the airwaves with their recommendations, why not take their advice? But which advice should you follow? Cramer may say buy, while Buffett says sell. And remember that what pundits sell best is themselves.

8. Go with your gut. Fundamental research may be OK for the pros, but it’s much easier to buy or sell based on what your gut tells you. Had problems with your laptop lately? Maybe you should sell that IBM stock. When it comes to hunches, irrationality rules.

9. React frequently to market volatility. Responding to the market’s daily ups and downs is a surefire way to lock in losses. Even professional traders have a poor track record of guessing the market’s bigger shifts, let alone daily fluctuations.

10. Set it and forget it. Ignoring your portfolio until you’re ready to cash it in gives it the perfect opportunity to go completely out of balance, with past winners dominating. It also makes for a major misalignment of original investing goals and shifting life-stage priorities.

For more information or any questions regarding this topic, contact certified financial planner Dustin Rinaldi or call (239) 444-6111.

1Sources: ICI; Standard & Poor’s. The stock market is represented by the S&P 500, an unmanaged index considered representative of large-cap U.S. stocks. These hypothetical examples are for illustrative purposes only, and are not intended as investment advice.

According to the U.S. Department of Health and Human Services, 70% of people turning 65 can expect to use some form of long-term care during their lives. But less than one-third of Americans who are 50 or older have begun saving for long-term care.

Long-term care includes a range of personal daily living services. Most long-term care isn’t related to medical care, but rather assistance with daily bathing, dressing, using the toilet or eating. Other types of long-term support include help with housework, managing money, taking medication and shopping.

Many Americans mistakenly believe that Medicare pays for the bulk of long-term care. In fact, Medicare only pays for long-term care if you require skilled services or rehabilitative services, and it will only do so in a nursing home for a maximum of 100 days (the average is 22 days), or at home for a much shorter period.

Long-term care insurance can be expensive, but not having it may endanger your retirement and other savings.

Here are some tips to consider before you buy:

Don’t buy more insurance than you think you may need, or too little. You may have enough income to cover the bulk of your costs and so may only need a small policy to cover the remainder. Family members also may be willing and able to provide support. It is also far more difficult to increase coverage than decrease coverage, especially if your health has deteriorated.

It costs less to buy coverage when you are young. The average age of people buying long-term care insurance is about 60, but it’s significantly less expensive if you buy it in your late 40s or early 50s.

Research and consider different options, and talk with a financial advisor before finalizing your decision.

For more information about the basics of long-term care, its costs, and guidelines to help you make a decision, please contact us.

Disclosure: This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. LPL Financial and its advisors are providing educational services only and are not able to provide participants with investment advice specific to their particular needs. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own, separate from this education material.

Kmotion, Inc., P.O. Box 1456, Tualatin, OR 97062; 877-306-5055; www.kmotion.com

© 2014 Kmotion, Inc. This newsletter is a publication of Kmotion, Inc., whose role is solely that of publisher.

The articles and opinions in this newsletter are those of Kmotion. The articles and opinions are for general information only and are not intended to provide specific advice or recommendations for any individual.

Nothing in this publication shall be construed as providing investment counseling or directing employees to participate in any investment program in any way. Please consult your financial advisor or other appropriate professional for further assistance with regard to your individual situation.

Securities are offered through, LPL Financial, member FINRA/SIPC. To the extent you are receiving investment advice from a separately registered independent investment advisor, please note that LPL

Financial is not an affiliate of and makes no representation with respect to such entity.

RP-09798-1213

Tracking #1-226616

For more information or any questions regarding this topic, contact certified financial planner Dustin Rinaldi or call (239) 444-6111.