6 Things Dating Teaches Us About Investing

Bad date last night? Don't despair. It's not as bad as you may think. Here's some good news: you may not know it, but when it comes to your money, that bad date can teach you an awful lot about successful investing.

Think I'm joking? Think again. Although I was a far cry from being the King of Dating, I did have a few albeit rare lucky streaks in me. And looking back over those rare few times, my moderate success on the dating circuit did teach me quite a few things about prudent investing.

Here's a few quick examples:

1) DON'T JUDGE A BOOK BY ITS COVER

Dating: The guy was over a half-hour late, his outdated shirt barely matched his Taco Bell stained pants, the rain gave him a lethal dose of bed-head and back then the busboy was making more than he was. If that wasn't bad enough, his humor was a bit stale and the car he drove had a weird putter that attracted nothing but aliens from the evil Planet X. While at first the girl thought it was going to be a dinner date from fiery hell, little did she realize that guy was I, and I'd soon wind up being the one she'd marry.

Investing: The receptionist was sure nice, but the carpets were dull and the musty furniture reminded you of grandma's place in Brooklyn. You were ready to take your money to that Private Wealth Management Firm --- the one with the white marble staircase and baby grand --- but when the well-mannered financial advisor appeared, you figured you'd be courteous and give him a few minutes of time. A little into his pitch, you were most pleasantly surprised when he touted low cost, tax efficient investments that perfectly matched your goals. It was then you realized there's a reason the furniture in his place is a bit out-dated, mainly, because the guy isn't touting the high fee investments.

Lesson Learned: First impressions can easily get the best of us. Whether it's a date or your money, taking a step back to peek behind the curtain will typically put both your money and heart in a much better place.

2) COSTS COUNT

Dating: She liked Dylan Thomas, idolized Ginsberg, despised the conformists and was clinically depressed that she missed last year's Monterey Pop Music Festival. The perfect 10 from down in the Village strummed an acoustic, wrote poetry and even donated your favorite Levis to a homeless guy on the street. While at first lust got the best of you, months after helping her pay the rent, her organic meals and for all those Warhol movies you pretended to like, you were finally worn out, leading you to realize that when it comes to dating, costs most definitely do count.

Investing: The mutual fund was barely moving. Five years into it, you just couldn't quite figure out why you weren't making much money. Then, one fine day, you wisely took the time to research the fees you were paying, only to realize the fund was charging you way too much per year in annual costs and causing you all sorts of taxes.

Lesson Learned: When it comes to investing and dating, costs most definitely do count. Taking the time to evaluate how much you're paying for your dates and funds is an essential part of anyone's success.

3) DIVERSIFICATION IS THE KEY TO SUCCESS

Dating: Adam looked like Alan, Alan acted like Arnold, Arnold smelled like Arnie and Arnie reminded you of Alex. And just when you thought you found the Perfect-A, Aden stood you up just like Albert and Abe once did (or was that Alfonse?). It was then, in one fleeting moment of revelation, you finally realized the problem had nothing to you, but everything to do with guys whose names start with the letter "A."

Investing: Dot-coms, late 90s. Financials, 2008 Need I say more?

Lesson Learned: Diversifying your investments is a critical key to investment success. Load up in one sector or stock and it's not a question of if disaster will strike, it's usually a question of when. Spread the risk, diversify your investments into the prudent, timeless fundamental asset classes and of far more importance, consider dating guys whose names start with the letter A.

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