| |
| |
|
Investing Information |
|
|
|
Diversify!
The best way to avoid being hit hard by a stock market crash or another Enron/Worldcom fiasco is to make sure you don't put all your eggs in one basket. Diversification helps ensure steady growth of your net worth as you accumulate more assets. This idea is not limited to the stocks in your portfolio, but should include all of the components that make up your net worth. For instance, it's OK to take $5,000 and put it in a stock you like as long as you have plenty of assets in other areas, such as home or property value, mutual funds, savings, etc... However, if you're still in the beginning stages of building wealth, and you only have $500 in savings, and you're renting an apartment and lease your auto, you probably don't want to put $5,000 in one stock. A good guideline is to keep from having more than 20% of your net worth in any one asset, unless it's your home. Here's a good example of a diversified net worth portfolio for someone in their 30's: Checking account : $2,000 Of course, the amounts will be more or less, depending on your age & situation in life. Also, don't forget to protect your net worth with some long-term disability and/or life insurance, even if you're young. Following this simple guideline will hopefully help you reach your retirement goals. About the author: Scott is in his mid-thirties and has a Bachelor's Degree in Accounting, with a minor in Decision Science. He entered the accounting field ten years ago, when he started working for a software company, where he stayed seven years. He is now the Inventory Control Manager for a large winery.
MORE RESOURCES:
Investing - Google News |
|
|
|
RELATED ARTICLES
5 Day Trading Tips for Success 1. How to Treat Gap Openings A gap up or gap down open is an emotional move, and it often will reverse course and turn in to "trap open". Need To Trade! You don't HAVE to be trading.As a novice trader, you'll often feel the need to trade. The Differences Betweeen the Wealthy and Everyone Else I recently received an e-mail from a young lady who had doubts about the principles of wealth found in "Rich Dad, Poor Dad". She mentioned a couple of past failed investments, and wanted to know what I thought about investing and financial freedom - whether it was just a myth, or whether it could be acquired. Coca-Cola - A Value Stock? There has been much talk lately about Coca-Cola and its potential as a value stock - as it now spots a dividend yield of 2.6% (which is the highest dividend yield since the late 1980s) and a P/E or less than 21 - right at the bottom of its five-year low. Well Managed Investing Risks Bring Rewards! "Risk comes from not knowing what you're doing!" Warren Buffett (1930 - )We often listen to people who hesitate to invest in the stock market because they fear risk. There are older people who fear that a stock crash could leave them destitute. Options Made Easy and Investor Education - Simple Enough for a 10 yr Old Kid How many of you out there think that the market is performing well?How many think the market is performing poorly?And how many feel the markets performance is neutral?Actually none of these answers is correct. You see, learning and reading our options made easy articles, you will realize that the market does not perform, you do. Financial Planners "Financial planners are like dentists: they may occasionally inflict pain, but in the end, you will be better off for following their advice!"Whoever wrote these lines must have either been a financial planner or someone who relied heavily on planners for finance management. We all know that planning our finances is vital. Introduction To FOREX The Foreign Exchange Market, better known as FOREX, is a worldwide market for buying and selling currencies. It handles a huge volume of transactions 24 hours a day, 5 days a week. Can Your Annuity Do This? Many people buy annuities according to their agent's recommendations. However, many people do not even know what they own. Commodities - The Next Big Wave of Fortune Building Have you often wished you could have got in on a tremendous money making opportunity before it took off? How would you feel if you had bought Microsoft stock when it first went public and your investment doubled 5 times? Imagine how rich you would be right now?I'm not saying you should be in Microsoft stock at this time. In fact Microsoft's stock has stayed in the $25 range for years now. Finding a Broker "Hey Joe! I need help finding a broker. I notice that discount commission rates are pretty much the same. Invest To Make Money, Not To Get Rich The technology boom of the '90s romanticized the "rags-to-riches" ideal that all of us dream about when investing. For those that invested $1000 in Dell at $5 during 1990, held through the seven splits, then sold in March 2000 at $59, the dream was a reality. The Convertible Craze Brightens The Future Of Equities Convertibles are stealing the show with their safe investment image in today's "protective" market. They seem to be overshadowing the stocks and bonds, and this holds true for the mediocre issuers. Retirement Plan Considerations Cheat Sheet for Small Business RETIREMENT PLAN CONSIDERATIONS are something every small business person needs to be thinking about. Do you have a strategic plan? Don't expect to have social security save you. Finding the Perfect Company The perfect company - it's the holy grail of the investment world. The company that will make its initial investment hundreds of times over. Creating Momentum with Options - Pro and Cons of At-the-money, In-the-money, and Out-of-the-money To create momentum in your options trading you need to understand the advantages and disadvantages of at-the-money options, in-the-money options and out-of-the-money options.An at-the-money option has both advantages and disadvantages over stock and in-the-money options. Investing & Online Stock & Share Trading- The Stock & Share Markets are Booming But Be Warned I had the pleasure of being invited on a friend's yacht to sail in a race on Sydney Harbour yesterday. On board, as one of our motley crew, I met a top ranking corporate executive from one of Australia's largest banks, who we'll call 'Phil' here for the purpose of this article. Consolidation Period The economic data reported Fri showed continued above trend growth with disinflation (at the core level, excluding food and energy) in the second quarter. Real output growth has slowed from about 4% in 2003 & 2004 to just over 3 1/2% so far this year, while a core inflation rate fell from 3% last quarter to 2%. Creating a Financial Future - Putting Your Plan Into Action Part 1 This column has previously discussed "picturing the future that we desire", and outlining a plan to achieve it. We mentioned that the plan must include goal-setting, measurement, and implementation. Investing: The Art Of Making Your Money Work For You There is a lot to know about investing. It all depends on what type of investing you are interested in as well.
|
| home | site map |
| © 2006 |
