{"id":4821,"date":"2013-12-18T02:00:51","date_gmt":"2013-12-18T10:00:51","guid":{"rendered":"http:\/\/add-vodka.com\/?p=4821"},"modified":"2015-05-28T19:54:42","modified_gmt":"2015-05-29T02:54:42","slug":"5-tips-for-successful-investing","status":"publish","type":"post","link":"https:\/\/add-vodka.com\/5-tips-for-successful-investing\/","title":{"rendered":"5 Tips for Successful Investing"},"content":{"rendered":"
How difficult do you make investing? I think we all have a tendency to chase hot leads and follow the market day by day, but I don’t think that’s a recipe for success. Attempting to forecast short term changes in the market is futile.<\/p>\n
Simplicity is the your key to investment success. The easier, the less complicated, the better. The simplicity effect can be combined with a solid investment plan to ensure long term success.<\/p>\n I’d like to share 5 tips with you today that will help you accumulate more wealth with less effort and less stress. Here are my 5 tips for successful investing!<\/p>\n Remember the short term market forecasting statement above – it just doesn’t work. Making a preset plan with a defined asset allocation, specific assets, and a determined rebalancing period will help prevent you from making bad decisions and chasing down ice cold leads. A plan is probably far more important than the specific assets you choose to hold.<\/p>\n If you can’t stand losses, own more short term bonds. The worst possible mistake you can make is holding 100% equities and then selling out when the market tanks. You’ll ensure financial ruin with that plan. The best asset allocation is one that should yield the highest return up to your maximum loss tolerance. You’ve got to figure out if you can sleep at night after losing 10%, 25%, or 50% of your portfolio.<\/p>\n Dollar cost averaging means buying your predetermined assets in set intervals, which is often monthly. In other words, contribute a portion of your paycheck each month to your investment account, which should automatically invest in the assets your determined in your plan. Coming full circle, aren’t we?<\/p>\n This is another way to prevent yourself from trying to time the market or forecast upcoming market movements. You just set it up and let it work. When the market is down, your money will buy more shares of your chosen investment. When the market is up, you’ll buy less. The average is actually in your favor over time.<\/p>\n ETFs are a wonderful investment vehicle. They allow you to own thousands of stocks, or even the whole stock market for a very small fee. They are extremely tax efficient because you get to choose when to buy and sell, which means you can control all capital gains.\u2020Did I mention fees? ETFs have crazy low fees. Many charge less than 0.10%!<\/p>\n<\/a>
1. Have a Plan<\/strong><\/h3>\n
2. Invest based on Your Risk Tolerance<\/strong><\/h3>\n
3. Dollar Cost Average<\/strong><\/h3>\n
4. Diversify with ETFs<\/strong><\/h3>\n