CNN Money has an article on 6 financial adviser’s favorite strategy to navigate the tough times. I don’t know if all of them are secrets or not but all are good ones. Here they are:
- Staying Cool in This Market – the secret is to know what you can control. The history is not something you can control. Think of the outcome instead and whether the recent events affected that. It might not be as bad as you think.
- Creating the Right Mix – the secret to knowing asset allocation is knowing who you are. Start with 65% stocks and 35% bonds and cash and then adjust based on your personality and circumstances.
- Saving Money – the secret is to fund your goals first. Make a plan and pay yourself first!
- Making Your Money Last – the secret is to keep 2 years in cash. The worst thing you can do is take money out of stocks when they are in a slump because you need money for groceries. Keep using your reserves until the market rebounds a bit and then replenish it.
- Avoid a Big Tax Bill – the secret is to shelter your best investments. Keep the high turnover funds in your retirement accounts and low turn over ones in a taxable account. Easy but a seldom followed approach!
- Balancing Goals – the secret is to make long term goal a priority. Work on the retirement goal, followed by others. If you don’t work on the biggest ones first, it’s unlikely that you will be able to.
Promote or Save This Article
If you like this article, please consider bookmarking or helping us promote it!
Print Post | Email Post | Del.icio.us | Stumble it! | Reddit |
Related Posts
- Casual Sunday Links
- The Free Frugal Email Newsletter
- How to Qualify a Financial Adviser – Three Questions She Should Ask
- Frugal Living is Great Edition
- Regulate the Realtors – Government Improvement Series
Subscribe! (and Get a Mini-Course with Free Registration)
Follow me on twitter! In addition, subscribe to grab free amazing content or take advantage of the newsletter to have content delivered to you. For starters, a 7-part mini course to help you spend less and be happy will be delivered to you when you subscribe!(Don't worry about spam, because we hate it as much as you do!)
Twitter
Facebook
Subscribe
{ 3 comments… read them below or add one }
These don’t sound too secret. They seem like almost common sense to anybody who has done any reading or studying about finance. The one I (or any entrepreneur) might add is: learn how to generate income outside of your job. That way you don’t depend on anybody but yourself. There are lots of ways to learn entrepreneurialism. We have a book “The Entrepreneurial Experience” that gets you started in business in 9 weeks, for example. Anybody can start a business, even part time, and the experience gives you a sense of freedom above and beyond just saving money…
Everything about investing and saving money is no brainier. You do not need to be a mathematician to be rich, you just need to be smart about your money. One of that is setting goals and staying on track, do not let the wind take you.
Solid tips for the beginning investor.