| |
| |
|
Investing Information |
|
|
|
Diversify!
The best way to avoid being hit hard by a stock market crash or another Enron/Worldcom fiasco is to make sure you don't put all your eggs in one basket. Diversification helps ensure steady growth of your net worth as you accumulate more assets. This idea is not limited to the stocks in your portfolio, but should include all of the components that make up your net worth. For instance, it's OK to take $5,000 and put it in a stock you like as long as you have plenty of assets in other areas, such as home or property value, mutual funds, savings, etc... However, if you're still in the beginning stages of building wealth, and you only have $500 in savings, and you're renting an apartment and lease your auto, you probably don't want to put $5,000 in one stock. A good guideline is to keep from having more than 20% of your net worth in any one asset, unless it's your home. Here's a good example of a diversified net worth portfolio for someone in their 30's: Checking account : $2,000 Of course, the amounts will be more or less, depending on your age & situation in life. Also, don't forget to protect your net worth with some long-term disability and/or life insurance, even if you're young. Following this simple guideline will hopefully help you reach your retirement goals. About the author: Scott is in his mid-thirties and has a Bachelor's Degree in Accounting, with a minor in Decision Science. He entered the accounting field ten years ago, when he started working for a software company, where he stayed seven years. He is now the Inventory Control Manager for a large winery.
MORE RESOURCES:
Investing - Google News |
|
|
|
RELATED ARTICLES
Credit Scores = ROI Profits for Real Estate Investors Strong credit saves real estate investors money on mortgage finance costs. A good credit score, along with the other credit and mortgage qualifications, means that investors can pay lower fees for financing, such as points and interest charges. Dont Catch a Falling Knife One of the most common mistakes made by inexperienced investors is trying to "catch a falling knife". This is the phrase used to describe the habit of buying stocks that are in "freefall", and is a poor strategy, albeit common among new investors. Shop More, Save More for College Gimmick or Reality? The man sat in a chair beside a dressing room at a Tampa, Fla. maternity store. Building The Foundation For Wealth You wouldn't build your home on anything less than a solid foundation. Similarly, you can't build wealth and financial independence without first having sound foundational principles to build upon. The Truth About Real Estate Investing - Is It Right For You? You have probably been hearing, seeing and reading that real estate investing is the best thing since sliced bread. There are many late night cable television infomercials spewing out sales pitches for courses that teach you how to buy residential real estate no money down or for next to nothing. Approaches to Investing Here is a small summary of the three major approaches to investing:1. Fundamental AnalysisTruly superior companies exist, are sometimes undervalued by markets, and can be identified by mostly financial research. Chile Leads the Latin Pack Everyone's talking about China. Don't miss the opportunities in the other CHI. Day Trading Strategy or Stock Trading Software? The Way You Pick Stocks Affects Your Results The trading method you employ to approach the stock market can make a big difference in your results.Stock trading is a very competitive field and in order to succeed you need to FOCUS on a set of simple strategies that you can implement without hesitation. Wit and Wisdom on Money, Wall Street and Success - Part #4 Can you concisely summarize your investment philosophy in a few sentences? My experience is that most people can't. The quotes that follow are diamonds that offer a real powerful education in the world of Risk Management. Why You Need To Buy and Sell Gold Coins (Part 6) Pre-1933 Gold Outperforms Today's Gold Bullion.. A Safe Port For Mutual Funds But Not You! Soft dollars, a form of legal kickback, is a sly way you can get ripped off by mutual fund managers. Full service brokers give these kickbacks to non-indexed mutual funds in the form of a "rebate" to purchase research, software, and even computer equipment. The Dreaded Direct Question (Please have a glass of water within reach before reading this article.)Your personal financial planning is the topic of discussion here today, but not quite yet. Stock Market Leaders and Laggards Leaders are stocks that breakout immediately when the market confirms a new rally. In the first several weeks, strong stocks with leadership ability will breakout on volume above their 50-day average. High Volatility Investments Penny stocks and options are high volatility investments that attract both the trader and the long term investor because of the small amount of capital required to make substantial gains as compared with less volatile higher priced stocks. The long term investor buys a stock believing that a company's value will increase over time and the stock price along with it. POOF goes your RRIF ! Some time ago I attended a seminar where participants were told to burn some money; a reasonably-sized amount of money. You should have heard the gnawing and gnashing of teeth in that room! Step right up, folks, and light it on fire. Trading Tips No 7: Developing a Casino Mentality for the Day Trader I submit that the successful day trader would profit well to adopt a casino mentality. At first glance, this sounds reckless and nothing more than a gambling attitude - but it's not. Five Sure Fire Way to Secure Your Financial Future "You can be poor when you're young, but you can't be poor when you're old." That was the tag line used some years ago in a financial services television commercial. Your Worst Enemy To Successful Investing - The Media How do you make your investment decisions and where do you get your information? If you're like most of the people I know, you look to the experts.That's fine, however it's important to be aware that for every expert, there's an opinion and for every opinion there's an expert. Margin Benefits are Marginal at Best Margin is one of those things that novices find puzzling about the stock market, but the concept is really quite simple. Still, with understanding the basics of using margin accounts, determining the wisdom of using margin can be quite a conundrum. How to Setup a Profitable Trading Business In my opinion trading is the most exciting and best way to earn a living in the world. With just a small amount of equipment and space you can do it from anywhere on the planet.
|
| home | index |site map |
| © 2006 |
