Financial planning doesn’t have to be overwhelming. Consequently, 8 Timeless principles of investing provides education on solid investment principles. Here’s a sample of what’s included:
Only Focus on What You Can Control
How your investments perform are entirely out of your control. Many factors influence your investments. Notably, business decisions, interest rate changes, market movements, and economic or societal events. But don’t worry about them. Instead, simply focus on optimizing what you can control.
Don’t Try Timing the Markets
Chances are you’ve heard the term, “buy low, sell high”. It’s often quoted as being the quintessential roadmap to investment success. However, there’s a problem with that thinking. For example, you never know how the markets will operate each year. In addition, you don’t know which segments will outperform the rest. What may have been hot last year may not do so well this year. And chasing strong market performances is rarely a winning strategy. Instead, develop a sensible investment strategy. Specifically, one that protects and grows your investments regardless of the current environment.
Understand All Your Risks
While market risk is always a concern, there are many other risks you should consider. Most notably, inflation, healthcare costs, and a potentially longer lifespan. Those “other” risks can be the ones that threaten your money in retirement the most. While you shouldn’t act reckless about your investing risks, you should also make sure that fear of investment loss isn’t creating more risk in the long run.
Download now to discover the remaining five principles.