Across My Desk: Common sense tips
With the New Year here, what better time for a brief refresher course in what to expect from your investments than today.
Industry expert, Kevin Cronin, investments chief at Putnam Investments, offers these most excellent common sense tips:
Investing over a long time horizon can smooth out the effects of market volatility, so pick investments you can live with over the long-term.
Every investment choice involves some degree of risk. Understand what the risks are and balance them against the rewards.
Don't "chase" the market. Either get in and stay in, or keep on the sidelines.
Diversify. Spreading your money across different types of asset classes lessens the negative impact of any single asset class that declines.
Set realistic goals, know when you've made enough and it's time to get out.
Don't forget fixed income investments. They can provide stable, substantial returns.
Be patient, recognizing that smart investing is not exciting. It's gradual and made up of incremental gains and losses.
Why not print this page out and keep Cronin's tips at hand? It's this kind of simple, smart investing advice that's worth reviewing from time to time.
And, may 2007 be a happy, healthy and financially rewarding year for you and yours.
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