Financial Tips To Ensure A Sound Financial
Future!
1.
Consider your portfolio as
being 3 separate buckets of money.
A.The first bucket is your
Short term bucket. In the bucket you should keep enough
money to take care of Six months of your fixed monthly
expenses.
B. The second bucket is
money that you are contributing to a retirement plan,
such
as an IRA, 401K, 403B or SEP.
C. The third bucket is
called “The Rest of Your Life” bucket. This bucket
should be safe from investment risk.
2.
Warren Buffet says, “Don’t
Invest in things that you don’t understand. I would add
to that, that you should not Invest in things that
require constant observation, unless you have the time
to observe them.
3.
Find an advisor who you
truly trust, who is knowledgeable and has a proven track
record for helping others achieve their goals and
dreams.
4.
Never, Never, Never, enter into a financial agreement
(especially with friends and family) unless it is
written and all considerations are in detail, with time
frames. Just for good measure, have someone witness the
signatures or notorize it.
5.
Check on
www.nolo.com for helpful legal advice, software for
legal documents,
and strategies.
6.
Do not get sentimental with
an investment. Once it has dropped 20%, dump it. The
best fund managers stick to a strict investment
strategy.
7.
Do not pay any more taxes
that you have to.
8.
Do not hesitate to get out
of an investment because of taxes. Move money or
property without paying taxes.
9.
Never take your good health
for granted, purchase things like life insurance, health
ins., disability and long term care insurance now. Age
and health factors will increase the cost.
10.
Don’t get caught up in Hype
of an investment. There is a ceiling to everything. Don’t buy
at the Top because you feel that
your opportunity for owning will be lost. When you see
the Hype sold to you by Banks,
Advisors, Agents, the News media, lay low and wait for
the downturn…It is sure to come.
Buy low, sell high.
