Peter Grandich wrote Confessions of a Wall Street Whiz Kid in 2011 to talk about his journey from humble beginnings to riches and from material wealth to spiritual wealth.

In his book Mr. Grandich discusses how being in the media helped his career. In order to gain more clients, Mr. Grandich started a newsletter, which lead to interviews, which lead to more interviews in the TV financial press, which lead to more clients.

The middle chapters deal with his spiritual journey and the last chapters deal with lessons he has learnt being in the business.

Everyone should have a financial plan, however the important thing to know about all plans is they are dependent on 4 major economic factors: interest rates, tax rates, inflation rates, and rates of return. If any of them change in your forecasting, all the numbers change. It is also very difficult to forecast the 4 factors, so assumptions in dealing with your financial plan will have to be made and highlighted.

Mr. Grandich made a top ten list of the 10 Biggest Investment Mistakes

10. Hot potato buying – buying the latest get-rich quick scheme

9. Believing publications – headlines that say 10 sure-fire ways to riches will not happen.

8. Failing to consider spouse’s view – family planning is a team even

7. Believing money is evil – the love of money yes, money no.

6. Not fully understanding what you are doing – the less you know, the more you lose.

5. Inability to judge worthiness of risk – if it is too good to be true, it is too good to be true. Look at the bank rate, compare it too what you are being offered, why are you so fortunate?

The top 4 will be in tomorrow’s post.

Linking to dividend producing stocks, you might see a pattern developing, slow and steady win the race. We all want the quick way to riches, except for the proven way is ensure you get a return (dividends) and compound interest will help you.

There are more questions than answers, till the next time – to raising questions