Building a successful investing plan is like building a hero sandwich: stick with basic ingredients and don’t get too fancy.
Investors sometimes think they need a secret recipe to succeed. But for most people, there’s no big secret: Adhering to a few basic principles will serve you well regardless of where the markets are headed next week or next year, or whether or not you suss out Silicon Valley’s next big thing. // When it comes to finding the best ingredients for healthy gains over the long haul, selecting the right mix of assets, for example, trumps choosing a particular stock or mutual fund. You’ll do better by keeping your investments simple and your costs low than by dabbling in more-exotic fare or chasing after the hot fund manager du jour. If you can start setting aside money when you’re young, you’ll have enough to accommodate a more sophisticated palate later. And for gosh sakes, don’t let Uncle Sam take too big a bite out of your profits.
SPREAD YOUR INVESTMENTS
Diversifying your holdings increases the chances that when one or more of your investments are struggling, others will be performing well. “If you could time markets perfectly, that would be best,” says Maria Bruno, a strategist at the Vanguard Group. “But that’s hard to do, so diversification comes into play.”
Think of your investments as a smorgasbord. You’ll want to spread your wealth among stocks, bonds and other assets, a process known as asset allocation. Although investors tend to hem and haw about whether to buy this stock or sell that fund, research shows that 88% of a portfolio’s ups and downs over time are explained by its asset allocation; only 12% have to do with security selection or market timing. With stocks, you’ll want to consider different investment styles, company sizes, industries and countries. With bonds, go for varying maturities and levels of credit risk.
この記事は Kiplinger's Personal Finance の November 2016 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は Kiplinger's Personal Finance の November 2016 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
FREE HELP FOR COLLEGEBOUND STUDENTS
This program’s mentors assist applicants as they fill out the FAFSA, write essays and more.
WHAT YOU SHOULD KNOW ABOUT SPOUSAL IRAS
You typically need earned income to contribute to an individual retirement account, but a spousal IRA provides an important exception to this rule.
SELLING SHARES? HERE'S HOW TO MINIMIZE TAXES ON YOUR GAINS
ET'S say you've been regularly buying shares in a booming tech company over the past few years, but now you want to start taking some of those profits, perhaps to rebalance your portfolio.
Strategies for Novice Investors
AS part of a lifes kills program for young, single mothers, I was asked to teach a class on how to get on top of your finances.
ANSWERS TO YOUR 529 PLAN QUESTIONS
Thanks to recent policy changes, families have more options for what to do with money sitting in these tax-advantaged accounts.
Rate-Cut Winners and Losers
NOW that the Federal Reserve has cracked the interest rate ice, the next development will be to separate winners from losers.
SHOULD YOU BUY THESE RED-HOT FUNDS?
Covered-call ETFs are popular but come with plenty of caveats.
DIVIDEND STOCKS ARE READY TO REBOUND
Our favorite dividend payers are poised to benefit as falling interest rates lure investors back.
IS A 55+ COMMUNITY RIGHT FOR YOU?
These age-restricted developments appeal to older adults seeking abundant amenities and an active lifestyle.
AT LONG LAST, RATES ARE DROPPING
Consider these portfolio moves now that the Federal Reserve has cut its benchmark interest rate.