Is worth a pound of cure.
This age-old saying is great advice in any of the following situations:
- prior to a night of drinking
- potty-training your kid
- wearing the harness on a roller-coaster
- investing in the stock market
If you’re going to succeed as an investor while not driving yourself crazy with stress, being prepared is the best thing you can do. So what does preparation look like? Like anything, an honest evaluation about where you are currently and what you want to achieve is the first step. Only then can you fill in the area in-between with your plan.
Everyone’s plan is different, as we all have different time-horizons, appetites for risk, and financial goals. Lining up your investments accordingly will save you sleepless nights during the next market downturn and keep you from feeling like you need to check on your investment accounts every day. Let your investments work for you, rather than causing stress and taking up time.
Rather than reinvent the wheel, I wanted to share a quick, informative article by Charles Schwab. If you can understand these seven points, you’ll be in great shape to come out ahead in the long run.
Give me a call or send an email if you have questions about anything in the article. I’m always happy to talk through whatever personal finance decisions you’re trying to make.
-David
MoneyStuff 