Investing
Investing should be easy – just buy low and sell high – but most of us have trouble following that simple advice. There are principles and strategies that may enable you to put together an investment portfolio that reflects your risk tolerance, time horizon, and goals. Understanding these principles and strategies can help you avoid some of the pitfalls that snare some investors.
Additional Resources: Articles and Videos
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Five Smart Investing Principles:
Slide Presentation: Five Smart Investing Principles
There are five smart investing principles that are helpful to understand if you want to potentially break the cycle of buying high and selling low. Are there other investing principles?
1. Estimate your time horizon.
2. Know your risk profile.
3. Diversify, diversify, diversify.
4. Consider the effects of taxes and inflation.
5. Start now and take the initiative.
Five Smart Investing Strategies:
Slide Presentation: Five Smart Investing Strategies
While there are many sound investment approaches, there are five steps that have the potential to benefit the greatest majority of investors. Understanding these strategies could help improve your portfolio's long-term results.
1. Don't time the market.
2. Review your asset allocation.
3. Choose appropriate investments based on your individual situation.
4. Remember dollar-cost averaging.
5. Consider rebalancing your portfolio.