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Answer:
Dear
Carol,
Yes...
we're delighted to give you some less well known investing
tips. But I want to emphasize that some of the tried
and true advice, such as never put all your eggs in
one basket, are valid, even if they seem clich?d.
Clich?s often come into existence because over time
they have proven to basically be true.
Here
are 12 suggestions that you may find helpful.
Weigh
yourself. Determine your net worth: Add up your
assets (house, investments, car, insurance, collectibles,
savings, retirement funds) and subtract your liabilities
(mortgage, credit card debt, automobile and personal
loans). Strive to make your net worth increase every
year. And, invest at least one-third of that increase.
Make
a list of financial goals. Assign each one a due
date. You'll feel great crossing them out!
Toss
out the shoebox. Get organized. Buy a filing cabinet
and up-to-date software. Unless you know what you
own, where it is and how much it's worth, your financial
life will be a muddle. So will your financial decisions.
Find
your money. Once you have your virtual or real
filing cabinet, set aside one day a year to get your
financial papers in order. Lost or missing financial
documents can cost you (or your family) time and money.
Pretend
that this year is your last year of work. That
way you will save more money, spend less and tackle
retirement planning issues in earnest.
Buy
your certificates of deposit through a stockbroker.
Brokerage firms shop the nation's banks, often getting
higher rates on CDs than those offered by individual
banks. BUYandHOLD does not offer CDs.
"Never
invest your money in anything that eats or needs repainting."
So said Broadway producer, Billy Rose. Don't take
his remarks too seriously. But if you follow his advice,
you will basically be left with the stock market.
Not a bad thing. Stocks over the long term have had
better returns than Treasuries and collectibles.
Learn
to earn. Dummies don't make money, so sign up
for a course in personal finance - at your community
college, school of continuing education, or YMCA or
YWCA. I believe it's generally a good idea to skip
free seminars. They're often a way for the sponsor
to find new clients. Or if you do decide to attend
one, realize the hidden bottom line.
Take
notes. Keep a financial journal. Jot down any
smart advice or ideas you come upon. Like good gloves,
umbrellas and sunglasses, good ideas have a way of
getting lost.
Give
a cold shoulder to cold callers. Never invest in anything
based on a phone call from someone you don't know
or whose office is a post office box.
Sleep
on it. Never buy an investment the first day you
hear about it. Think on it overnight. Impulse investments,
like some impulse romances, can come back to haunt
you!
Always
leave an obviously sinking ship. There's no virtue
in hanging on to losers. And, stocks don't have feelings.
Understand
the difference between income and growth. Always
know whether you're investing for income (money market
funds, CDs, savings accounts, bonds, high-dividend
stocks, rental real estate) or appreciation (growth
stocks and mutual funds, non-rental real estate, collectibles,
precious metals, antiques, art work).
If
you confuse the two, you might sell assets that grow
in value and price - because they don't produce dividends.
Or you might sell income producers - because they
don't go up in price.
Give
in to this confusion and it's highly unlikely you'll
make money.
We
hope these help!
Good
Luck!
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