1. 'Stocks and bonds are a good long term investment.'

There is no such thing as a good long term securities investment. The best investments change as the economy and the interest rates change.

2. 'We'll diversify into different investments-some bonds, some stocks for safety'.
Stocks and bonds are good investment at different time, but not at the same time.

3. 'Government securities are always good, safe investment for those who want income'.
Government securities are bonds. bonds drop about 10% in principal value for
every 1% increase in the prime rate. NEVER invest in government securities when the prime rate is going up.
4. 'This investment is a hedge against inflation.'
If you just keep pace with the inflation, your before tax profit is zero. If you have to pay taxes on the phantom capital gains, you end up with guaranteed loss of 19% or more.

5. 'I've got a hot tip on a good stock'.
Hot tips ruins most unaware investors. Stockbrokers are always least informed in a brokerage-firm hierarchy, and their hot tips usually lose investors' money.

6. 'Zero coupon or remainder bonds are great investment for your children.'
The best way to invest for the children under 14 is mutual funds, averaging over 15%. even with 10% withdrawal penalty the child's account will average over 15% per year.
7. 'You should pay commissions because you get better financial advice.'

A good financial advisor or money manager will earn you 20% or more per year after commissions, but those of this calibre only manage portfolios of 1,000,000 or more and spend most of their time on the ski slopes.
8. 'A TRUST company or bank trust department should become the trusty for your estate.'
Trust companies or bank trust departments have the worse track records of any estate managers, often losing 60% of an estate in five to ten years. Use your trustee a lawyer, friend or relative who will follow exactly the strategies you are learning now for building and preserving your estate.