Investing: Four words that can rob you blind

  • Financial advisor Allan Roth is not ashamed to admit that he enjoys immediate gratification as much as the next person. He likes his cable and internet, has a 70 inch HDTV, and stays in nice hotels. He has good insurance and uses his credit card whenever he can.That said, he also hates paying full price: "Never pay retail" is his motto. Here are ten simple ways to be materialistic while still improving your finances. CBS/iStockphoto
    rich and poor hands

    We in the financial services industry are experts in using words to convince you that we are on your side. The problem is, of course, that we often aren't.

    I've looked at thousands of pitches over the years that were meant to lull investors into thinking they were making the right decision. These pitches will almost always include the four words that are frequently used to trick you.

    Each of these four words are seemingly logical and devoid of emotion. In fact, all four words are employed in the context of persuading you to believe you are making a logical decision, when all they actually do is get you to act emotionally. Click "next" above to see each of the four words that can be used to rob you blind.

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    Allan S. Roth is the founder of Wealth Logic, an hourly based financial planning and investment advisory firm that advises clients with portfolios ranging from $10,000 to over $50 million. The author of How a Second Grader Beats Wall Street, Roth teaches investments and behavioral finance at the University of Denver and is a frequent speaker. He is required by law to note that his columns are not meant as specific investment advice, since any advice of that sort would need to take into account such things as each reader's willingness and need to take risk. His columns will specifically avoid the foolishness of predicting the next hot stock or what the stock market will do next month.