Whenever you buy an investment, it’s a good idea to think about how long you want to own it. This is called your investment time horizon. Are you hoping to make a quick profit so you can take a nice vacation this summer? Or are you investing for retirement, which may be 20 or 30 years away? The longer your time horizon, the more volatility (price change) you can tolerate. Sink the vacation money into a volatile stock fund and you may end up staying home this summer. But put your retirement money into the same fund, and you could...

Read More »

Some view investing in stocks, bonds and other investments as nothing more than gambling. Others see it as a smart strategy for making your money work for you. Who's right? It depends on your approach. These days it's no secret that practically all investments carry some degree of risk. Stocks can lose value, or their issuers could stop paying dividends. Bonds may not be repaid as agreed. That's why it's so important to thoroughly research any investment you make. But some investors prefer to buy and sell attractive stocks in the hope that they will increase in value. If this works,...

Read More »

Hindsight is so clear. A stock chart can tell you exactly when you should have bought and sold. Reliable market predictions, on the other hand, are impossible. If you could spot a peak (or trough) as it's occurring and time your sale or purchase accordingly, you could make a fortune. Problem is, nobody can do it. So although it can be tempting to take your profits and run when the market is advancing sharply, it may be better to hold on and see what happens. Then, a least twice a year, rebalance your portfolio to restore your original mix of...

Read More »

The most important measure of financial health is your net worth. So what is net worth? Net worth provides an indication of where you stand financially. This is important for a number of reasons. Keeping an eye on your finances is necessary if you plan on buying a house, a car, or affording college for your children. Of course how well you do in retirement is directly impacted by your net worth when you plan on retiring. Your net worth is a simple calculation of dollars and cents, addition and subtraction. It is a net number calculated by...

Read More »

Even in the current market downturn there are some basic planning concepts that you need to follow. Whenever you buy an investment, it’s a good idea to think about how long you want to own it. This is called your investment time horizon. Are you hoping to make a quick profit so you can take a nice vacation this summer? Or are you investing for retirement, which may be 20 or 30 years away? The longer your time horizon, the more volatility (price change) you can tolerate. Sink the vacation money into a volatile stock fund and you may end...

Read More »

How do you make your money work for you? One way is by investing your money. Investments are a way to make your money grow through the stock market, investment companies, mutual funds, and retirement accounts. But, while you are looking to invest your hard-earned money in something, don’t forget to familiarize yourself with the mistakes that are more commonly made by new investors: 1. Not taking advantage of your 401(k) plan. Most employers offer a retirement plan for their employees. It can either be used from the first day of employment or there is...

Read More »

If you're like most people, you pay your bills every month and if there's anything left over, you put it into savings. The problem with paying yourself last is that there's usually not a lot left over. So try this instead: Commit to saving a certain amount each month, and make that the first check you write. Better yet, arrange to have an amount automatically transferred from your checking account to a mutual fund each month. If you have a dire emergency you can always take the money out of the mutual fund. But if you make saving really easy...

Read More »

After historic volatility in 2008 the current investment environment will continue to be strewn with potential challenges. Here are some important things to consider going forward: 1) Review your risk tolerance: Hopefully you have an investment plan, but that doesn’t mean you should let it sit for years without revisiting it. You should review your risk tolerance you’re your financial advisor and be sure your portfolio is allocated properly. Many portfolios have gone out of balance due to the large drop in equity values over the last 18 months. 2) Don’t abandon the investment ship: Market downturns are always filled with panic...

Read More »