Why you should stick with your bland investment strategy

Here are three top pieces of financial news and advice:

Overhyped investing newsletters

Odds are you've received a few investment solicitations over the years trumpeting outsize returns and easy millions, said Kathy Kristof at Kiplinger. In case you've been tempted, know that it's wise not to abandon your "comparatively bland investment strategy." Unlike heavily regulated mutual funds, investment newsletters "have a lot of freedom to highlight figures that cast them in the best possible light." Some tout figures that are impossible to verify or are taken wildly out of context. Others simply lie by omission. For example, a 63.8 percent return doesn't mean much if the broad market index earned 62 percent during the same time period. Or perhaps the author fails to state that the $485,000 gains he's advertising required an initial $1.8 million stake. "As the old Wall Street adage says, don't confuse a bull market with genius."

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Some losses are lose-lose

"When American taxpayers suffer a financial loss, they can often take comfort that they'll at least be able to get a tax write-off," said Dan Caplinger at DailyFinance. But that's not always the case. Losses on the sale of a personal residence, for example, "provide no relief for struggling taxpayers." The rules on capital losses are more generous. Up to $3,000 in capital losses can be used to offset other types of income. You're allowed to write off losses caused by natural disasters as well as criminal activity, but not below the first $100. You also have to reduce the amount of the claimed loss by 10 percent of your adjusted gross income. Gambling-related losses can only be used to offset winnings and only as an itemized deduction.

Be wary of life settlements

Selling your life insurance policy shouldn't be done lightly, said Eleanor Laise at Kiplinger. Life settlements, in which a policyholder sells his or her policy for a lump-sum cash payment, are growing in popularity with seniors, but they often bring in just a "small fraction" of the policy's face value. The amount of cash you can receive depends on your remaining life expectancy, your annual premiums, and your death benefit, as well as the rate of return the buyer demands. In most cases, sellers receive far less than the death benefit. The life settlement is also taxed, unlike a death benefit, which is paid out to beneficiaries tax-free. In addition, there are transaction costs, such as broker fees, adding up to as much as 20 percent.