Rules for Investing

  • I am an investor–I do not trade my investments frequently.  
  • I am also a saver–I routinely invest each month using my savings.  
  • I know every asset has risk and I consider the risk before buying.    I accept the risk by owning a diversity of assets.  
  • I have an investment plan and plan for allocation.
  • I invest regular amounts each month in both falling and rising markets. 
  • I spread out my investments among stocks and bonds.
  • My share of bonds equals my age.  
  • I rebalance once a quarter.  
  • I know that stocks are risky in the short run but not so risky in the long run.
  • I force myself to sell high and buy low.  Patience is the key here.  
  • I put at least 20 percent in international assets.  
  • I stick to my plan and try not to check my stock balances every day (this one is not easy).
  • I try to remember the words of Warren Buffet –” I am greedy when others are fearful and fearful when others are greedy.”

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