Rules of Investing

Start Early-

You are never really too young to start or too late to start figuring out when you want to be financially independent.

Diversify-

Since some investments go up when others down or sideways, it is best to diversify your money across several investment strategies and categories, from stocks to bond to real estate. Diversification spreads risk and helps to protect against a decline in any one investment.

Dollar Cost Average-

Fear can cause investors to miss buying opportunities when prices are low. Euphoria can cause investors to buy high. By investing the same amount in the same investments on a regular basis, dollar cost averaging takes emotion out of the equation.

Make saving for Retirement a priority-

Retirement will probably be coming sooner and cost more than you think. The good news, the younger you start, the better shot you will have at financial independence.

Max out your 401K-

Workers can contribute up to $18,000 to their 401(k) plans in 2016. To completely max out this account, you will need to save $1,500 a month or $750 every bi-weekly paycheck. If you can’t save enough to take full advantage of the 401(k), at least aim to save enough to claim any matching funds your employer offers.

Rebalance-

We recommend you review your portfolio annually to make sure your investment portfolio has not strayed from your original goals. If it has, you will need to talk to your advisor to discuss your options on whether or not it is a good time to rebalance your portfolio or to stay the course.

Don’t do it alone–

Hire a professional, educate yourself and make a plan.

Please feel free to contact Wamhoff Financial Planning & Accounting Services, Inc at 636-573-1212 with any questions.

Source: Article by: Daily Finance posted online December 9, 2015
http://www.dailyfinance.com/2015/12/09/investing-golden-rules