~ Featured Google Knol ~
Smart Investing
Smart Investing
by James Miller
- 1. Start investing early in life.
- 2. Maintain a diversified portfolio.
- 3. Consider buying an index fund.
- 4. Don't forget about foreign stocks.
- 5. Don't try to out-guess the market.
- 6. Don't take on "stupid" risks.
- 7. Understand the dangers of actively managed mutual funds.
- 7(A) On average, actively managed funds do worse than passively managed funds do.
- 7(B). Actively managed mutual funds have high fees.
- 7(C). Survivorship bias artificially inflates the mutual fund industry's past performance.
- 8. Don't engage in much stock trading.
- 9. Invest in tax-preferred vehicles such as 401K plans.
- 10. Avoid credit card debt.
- 11. Always take full advantage of matching contribution pension plans.
- 12. Be cautious about investing in your employer's stock.
- 13. Remember that your home is a very risky asset.
- 14. Learn how your financial advisor gets paid.
- 15. Buy life insurance if your family relies on your income or time.
- 16. You and your spouse should have disability insurance.
- 17. As you approach retirement consider putting much of your new savings into safe government bonds.
- 18. Women usually live longer than men and so need to save more for retirement.
- 19. Keep in mind that you might live a lot longer than your grandparents will/did.
- 20. Determine how much people in your job make.
Featured on : 2008-08-24
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