Personal Finance Topic #273 - 10 Gems of... | Gather

by Jeff S.

Member since:
August 16, 2008

10 Gems of investment wisdom

Over the last few years, I've been posting articles on how to save money, get out of debt, save on income tax, and become wealthy. ? In this post, I will offer another quick summary on investment concepts. ?Understanding these few gems of wisdom will keep your financial life lean and healthy:

10 Gems of investment wisdom:

1. Save while you earn ? Using direct deposit to squirrel away 15% or more of your wages into a retirement account is a painless way to save for the future
2. Don?t touch that 401(k) or IRA ? Pillaging your retirement fund is the most damaging way to ruin your retirement years
3. Pay down debts before investing ? It makes no sense that you invest $500 a month while paying $500 a month in interest charges
4. Invest frugally ? Paying 2% annual fee to a financial advisor or 5.75% front load on a mutual fund or 1.5% expense ratio can decimate your investments in the long run.
5. Invest wisely ? Dollar cost averaging, asset allocation, and invest-and-forget methods can sometimes fail, as we saw in 2008-2009 market down turn. Don?t always believe the ?experts?
6. Know your risk tolerance ? If you gamble your family inheritance at a casino, you are a risk taker. Some investments can be just as risky. Understand the risk in investments.
7. Don?t invest in something you don?t understand ? Some financial advisors sell you complicated stuff that you have no idea how it works. Just say, ?NO!? to these investments
8. Have a goal in mind ? Estimate your longevity and retirement age, calculate the retirement funds and college fund needed, then start investing funds needed each pay period into retirement funds early
9. Spend less than you earn ? This is not an investment concept, but should be heeded by all (including our Federal government). This requires a monthly budget and spending plan, and a commitment by all to stick to the budget
10. Know thy income tax ? This is the least understood subject in most investor?s mind. Don?t buy or sell without understanding the basic income tax rules. For example, Roth conversion can be a very expensive transaction if you do it when you are earning big salary

Most of these ideas are common sense stuff, but if you are alert with these ideas, you will do well.? Good luck with your investments.

Please provide details below to help Gather review this content. If it is found to be inappropriate and in violation of the Gather Terms of Service, action will be taken.

You have successfully submitted a report for this post.

Source: http://postoffice.gather.com/viewArticle.action?articleId=281474981617591

jenelle evans jenelle evans mlb 12 the show sabu google play franchise tag lesotho