Toucan Talk
Avoid These Eight Common Mistakes
Provided by Michael Oana mjo@teamoana.com

Michael Oana is the Chief Investment Officer with Team Oana Investment Advisors. Team Oana is a locally owned boutique investment firm specializing in helping conservative investors. Mr. Oana's Toucan Talk column appears bi- weekly in The Columbia Star.

What are some of the common mistakes made by individual
investors? Here are eight to keep in mind:

1. Not having enough money on hand for emergencies.
No one expects to lose their job or become ill. But it can happen, and the financial repercussions can be lasting. A prudent strategy is to keep enough money in a separate account to cover living expenses for up to six months. Once your emergency plan is in place, you're ready to set up a regular investment plan for your future.

2. Delaying the investment process. This can cause real
damage to your financial future, because time is a great ally when investing. Even relatively small amounts of money can grow rapidly over time. For instance, if you invested $1,200 per year and earned 8% annually, you'd have $43,740 in 17 years. Sock away $200 at the same rate, and your account would grow to $87,481.

3. Keeping too little in stocks. Many people don't have enough of their money invested in stocks and related investments. That's unfortunate. While stocks do go up and down, history has shown that they perform well over time. According to Ibbotson Associates, over the period from November 1926
through 2004, compound annual growth rates have been as follows:

Small-Company Stocks 12.9%
Large-Company Stocks 10.4%
Long-Term Government Bonds 5.4%
Treasury Bills 3.7%
Inflation 3.1%

Looking for a great guest speaker for your next event? Please call Staci Goins at Team Oana to schedule Mr. Oana to speak for your group.

4. Paying too much in taxes. Millions of Americans can cut their tax bill each year if they take the time to consider their choices. Here's how you can cut yours: Contribute as much as
possible to your company 401(k) plan. You may be eligible for a tax deduction on the contribution, and your earnings will grow tax -deferred. Also think about putting money in municipal bonds
and annuities. Annuities generate tax- deferred earnings. (However, be aware that withdrawals from an annuity before age 59.5 may incur
ordinary income tax plus a 10% tax penalty.) Municipal bonds pay tax-free interest.

5. Buying yesterday's winners. Last year's best investment rarely turns out to be this year's best investment. Don't buy a security just because it has been rising rapidly in recent months - evaluate its potential for continuing the positive trend.

6. Not focusing on fundamentals. Sometimes investors get caught up in the excitement of the
market, buying when stocks are high, selling when they are low - just the reverse of what you need to do. When you buy a stock, you're buying a piece of a business. Looking at the
fundamentals - the financial results and management - of that business can help you
buy low and sell high.

7. Being unprepared. Many investors make an investment believing it will only go up in value. Be prepared for it to go down. If it does, and the underlying business is sound, the decline may be an opportunity to buy additional shares at a more favorable price.

8. Failing to get professional guidance. Not many individuals have the time and expertise to monitor the financial markets and make investment decisions based on intensive research. The
guidance of a full-time investment professional may increase your profit potential and reduce your risks. Team Oana does not render legal, accounting or tax advice. Please consult your
CPA or attorney on such matters. The accuracy and completeness of this material are not guaranteed. The material is distributed solely for information purposes and is not a solicitation of an offer to buy any security or instrument or to participate in any trading strategy.

Team Oana Investment Advisors,Inc., is an independent company with securities offered through Summit Brokerage Services,Inc. Member NASD & SIPC.