Six Timeless Tips For Financial Health
Whether we’re experiencing a so-called flash crash or a raging bull, the markets can be turbulent. But no matter what’s happening in the financial world, these enduring tips can help you achieve investment success.
Review Your Financial Plan
It’s important to revisit your financial plan from time to time to ensure your goals still align with your risk tolerance and time horizon. This is especially important if you’ve gotten married, bought a home, or made other significant life changes.
Stick To Your Asset Allocation
Keep your mix of stocks, bonds, and cash aligned with your investing goals. If the market’s ups and downs have caused your allocation to shift, be sure to rebalance your portfolio.
Keep It Simple
Rather than trying to beat the market, consider investing in broad-based index funds, which seek to track the performance of a market benchmark. It’s an easy way to diversify your portfolio and keep your investing costs low. Low-cost investing lets you keep more of your returns—and over time that could translate into a net performance edge.
Control Your Taxes
Taxes can nibble away at your long-term investment returns, so learn how to be a tax-savvy investor and you can make the bite less painful.
Save As Much As Possible For Retirement
Be sure to take full advantage of your retirement savings options. If possible, you should plan to contribute the maximum amount to your retirement plan each year from now on.
Manage Your Debt
Don’t let excessive debt control you. Creating a budget based on what you have—not what you can borrow—and spending less can help you take control of your debt.
Follow these investing basics and you’ll be better prepared to weather any market condition. Note: All investments are subject to risks. Diversification doesn’t protect against a loss in a declining market nor ensure a profit.