Tuesday, January 21, 2014

A Great Investment Tip

As the new year begins, lots of investment advice is appearing.

Such as: the stock market is about to fall and a 'correction' is upon us, it isn't and the market will move higher, or it will pretty much stay where it is for the balance of the year, while interest rates will move higher quickly, or they won't.

Somebody will be right, since opinions are all over the lot. What's new about that? Nothing.

So here's the tip of the day, week, month and year as contained in Here's an Investment Tip: Don't Listen to Investment Tips:

"(Q) What’s the biggest mistake first-time investors make?

(A) The biggest mistake first time investors make is believing that they must identify winning investments before they invest. The second-biggest mistake is listening to family, friends, and gurus who claim to identify winning investments. First-time investors, like most long-time investors, do better with diversified portfolios, aware that winning investments are easier to identify in hindsight that in foresight."

Summing Up

Words to live by.

Work hard, start to invest early in your working career and set aside as much as you can each year. Take good care of your future self.

Invest for the long run.

Stay away from bonds for at least the next decade.

Stick with a diversified portfolio of blue chip dividend paying and growing stocks, or in the alternative, invest in a low cost S&P 500 index fund with Vanguard or Fidelity.

Then sit back and enjoy the rest of your life, knowing that you're taking the right steps for your future self and your family too.

That's my take.

Thanks. Bob.

1 comment:

  1. You really need to learn as much as you can, but you're right, you have to get into it or you're just going to get bogged down. Start small and work your way up to a more diversified portfolio. Every bit helps, and you can get a good start at