When I started my company some thirty years
ago, I was fortunate to have a seasoned mentor ‘show me the ropes’. The advice he gave me those thirty years ago,
still hold true. There are four (4) basic
truths.
1.
Keep a LONG TERM VIEW. Long term is actually a personal thing and it
could be anywhere between a few years to several decades. But the point is not to react to day-to-day
fluctuations.
2.
DIVERSIFY. We will discuss this in more detail but it
goes with the saying, “Don’t put all your eggs in one basket”. This applies to that tip you got from you buddy
at work who heard it from his uncle’s best friend from the Gym.
3.
DOLLAR COST
AVERAGE. Add to the fund
periodically. This way it helps even out
the ups and downs in your portfolio.
4.
MONITOR. Don’t assume that “the account will be OK”. Track it at a minimum every quarter.
ago, I was fortunate to have a seasoned mentor ‘show me the ropes’. The advice he gave me those thirty years ago,
still hold true. There are four (4) basic
truths.
Keep a LONG TERM VIEW. Long term is actually a personal thing and it
could be anywhere between a few years to several decades. But the point is not to react to day-to-day
fluctuations.
DIVERSIFY. We will discuss this in more detail but it
goes with the saying, “Don’t put all your eggs in one basket”. This applies to that tip you got from you buddy
at work who heard it from his uncle’s best friend from the Gym.
DOLLAR COST
AVERAGE. Add to the fund
periodically. This way it helps even out
the ups and downs in your portfolio.
MONITOR. Don’t assume that “the account will be OK”. Track it at a minimum every quarter.