What was your biggest financial mistake? You know that one, where you took a hit you would rather not talk about. A financial blunder is not necessarily precipitated by a poor stock market choice; it can involve anything.Often, the financial decision was carefully thought out, but it still proved wrong in the end because emotional choices over rode the rational process.I was inspired by a recent article in The New York Times, “Your Worst Financial Mistake” by Ann Carrns, to solicit the views of our Bermuda readers. Ms Carrns’ article generated 113 comments. It was rather obvious from the perceptive and hilarious comments that many are still smarting from these financial mishaps, or at least 113 of us still are.Here is a personal collection of major financial mistakes made over the years by me, clients, and colleagues — all situations changed to protect the innocent and the guilty, of course. I won’t admit which ones specifically were mine because, honestly, I’m just like you, human — not perfect — by any means.— She won a personal injury settlement in the low neighbourhood of $40,000. The entire award went to purchase a new fully-loaded bells-and-whistles truck for the boyfriend to use. Within the week, the truck and the boyfriend disappear, headed for new horizons.— He loaned a considerable sum to his brother-in-law. No repayment has taken place in spite of on-the-knees entreaties. He feels betrayed — he is also now unemployed. Needless to say, family gatherings have become hostile camps.— They gave their good friend a sizeable sum based on his investment expertise. The friend is a broker working for a large, “supposedly” reputable investment firm. “This is a great stock”, he said. “It is going places”. Oh, yes indeedy! It was going places, down, down, and delisted. Later, of course, too late, they find out that his investment firm wanted to get rid of their lousy stock inventory, so the firm paid extra commissions to the brokers who offloaded the securities on clients. PS — This deceptive practice was widely covered in US media.— They purchased a home that had a “bit” of water in the cellar — without doing their homework about the lay of the land in that area. Every heavy rainstorm, snow barrage, and power outage, their cellar emulated the name of the movie, “a River Runs Through It”.— Falling love with an investment. The stock value increased so much that they sold their other securities into the rising star to become a one-stock portfolio. The stock crashed.— She convinced Granny that the homestead needed fixing up. “We’ll get an equity line,” she suggested, “and at the same time we could make up some of the cost of the loan by investing the proceeds in the stock market. Her fast talking financial salesperson boyfriend knew just the shares to buy — and double their profit — on the margin. Result — stock market disaster. The equity line proceeds disappear, no fixing up takes place, and the mortgage payments are now double what they were months before.— Divorcing the right person. Tremendous regrets expressed — who knew in the long run that he really was the one who would achieve fabulous success?— And my favourite from the same New York Times article above, submitted in the reader’s commentary by Laura, MN, “Lending $4,000 to a hustler trying to go straight and getting straight up hussled”.These are true composite stories except for the last, which is quoted from the New York Times.Now for a greatest financial success story.They were first generation US citizens of Greek origin. They owned a very small convenience store, and worked it hard on their feet for low pay, long hours for many years. She did not really understand stocks but intuitively kept track of the most popular purchases that her customers selected. She then identified the companies that made these products by reviewing the financial pages of the local newspaper. And yes, this was before the internet. Each week, she would buy a few shares, holding the stock certificates long-term in their safety deposit box. By the time, I met her as an elderly retiree, these same investments were worth several million dollars. They accumulated their wealth in small increments, slowly, thoughtfully, and carefully. I will never forget this woman; she was an inspiration.Do you remember your worst financial disaster, or your greatest financial success?Tell us about them — let us know what you learned in the process.Martha Myron, CPA CFP (US) TEP, is Director of International Tax Services and a cross border financial planning specialist at Patterson Partners Ltd, 26 Victoria St, Hamilton, Bermuda, and a member of the American Citizens Abroad Professional Tax Advisory Council. www.americansabroad.org Contact mmyron@patterson-partners.com or 1 441 296 3528