Don’t Be Fooled By These 3 Investing Tricks

This article exposes three common investing tricks used by financial professionals: misleading benchmark comparisons, inflating bond yields by including return of principal, and flawed advice regarding mortgage payoff versus investing. The author, Allan Roth, advises investors to always compare total returns with appropriate indexes, ensure that principal return isn’t counted as income, and understand the difference between risk-free and risky returns. He concludes that many financial advisors may not intentionally deceive clients but often misunderstand these complex financial nuances themselves.