5 Time Tested Tips

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Investing is a long journey that lasts decades.
Make sure your investment foundations are sturdy and can stand some market rattling along the way.

Your goal of investing is to be right more often than wrong.
Yes, plan on being wrong at times.

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We summarize our handful of time tested tips that serve you well in bull and bear markets:

1.. Profile
One pillar of investing is to adopt the investor profile comfortable to you.
Your profile determines the amount of risk you can stand and permits you to sleep well.
Wise investors care more about risk, while novice investors shop for returns.

2.. Mix
Asset mix has the biggest impact on portfolios.
Decide on your appropriate asset mix and invest within it.
Sprinkle your nest egg among a variety asset classes around the world.

3.. Rebalance
Trim your exposure to equities according to your plan when prices are high.
Add to equities when prices are low, as hard as it may feel.
Don’t get attached to any investment selection you made or are contemplating.

4.. Bandwagons
Take a pass on chasing those sizzling, exciting, red-hot bandwagons.
They have the annoying habit of cooling off, often rather quickly.
Not to mention, most investors miss the exits when it’s time to move on.

5.. Quality
Focus on the quality of your investments, say dividend paying ones.
If you crave a little raciness, set aside a specific amount for the aggressive picks.
That way you won’t be scorched if the unthinkable happens and the engines stop.

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Prepare your expectations for both the bullish and bearish outcomes.
Try not to get overwhelmed by too much investment information.

These five tips keep you out of the deep end most times.
Make sure they are part of your road map.

Talk soon,

Adrian

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avatarAdrian Mastracci - KCM Wealth Management posted Monday, May 2nd, 2011.

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