Investing Basics: Tips To Better Investing In 2017


Take Your Investing To The Next Level!

Are you ready to make 2017 your best financial year ever? Then it’s time to take some expert advice! Here are a few great places to start if you want to make sure that your investments in the new year do the best possible, and put your portfolio into the next level of success.


1. You should only invest beyond your 401(k) and IRA if you are already contributing as much as you are allowed to.

Scheil stresses that making the decision to invest beyond a 401(k) or IRA should only come when you’re comfortably maxing out your retirement accounts. He says, “This is due to income taxes. It’s hard to pass up tax deferred or even tax free. The first step is planning and deciding how much you have to invest, where the [additional money] is coming from (regular income, a bonus, inheritance, sale of an asset, gift, money in a savings account, etc.), when you might need or want the money, and how much risk you can stomach.”

2. Don’t get overly hung up on daily market volatility.

“Novice investors are too easily influenced by daily market movement and trying to time their investing. You are never going to get in at just the right time nor will you be getting out at just the right time. Dollar cost averaging or investing at regular intervals will even out the highs and lows,” says Scheil. The logic here is, if you’re in your late 20s or early 30s, the fluctuations of the market on one given day are unlikely to have serious consequences to the retirement money you’ll need to withdraw 30 years from now.

3. Before pursuing new investments, make sure you completely understand your existing portfolio.

Scheil provides a check list of questions to ask yourself: “If you have new money to invest, I suggest a quick review of the existing portfolio. Is it properly diversified? Are the investment positions meeting your expectations? Are the investments performing well relative to their risk and the markets? The answers to those questions will tell you if the new money should go into the same investments.”
– via Forbes

It Isn’t Just About The Stocks

If you want to become a great investor, your focus can’t just be on the stocks and bonds, but also on yourself. Do you know everything you should? Are you well informed in the terminology?

Making sure that your mindset is right is a vital part of finding true investing success.

1. Hold your own year-end review

We’re coming to the end of the year, a good time to pretend you’re a corporation and check your financial performance. Review your current portfolio and see if you need to adjust anything to keep your investments in line with your goals and objectives.

“Has there been a life event that changes the way you want your portfolio to work?” asks Thomas J. O’Connell, president of International Financial Advisory Group in Parsippany, New Jersey. A birth, death, retirement or a family member entering college can all have an impact on how you should invest during the new year.

2. Resolve to learn something

If you’re one of those people who thinks, “I have no idea how bonds work” or “What the heck is an ETF?” it’s time to educate yourself.

You don’t have to be Warren Buffett to gain a reasonable working knowledge of investments and retirement rules.

Just choose a couple of things you know you don’t understand and make it a goal to learn something about them. For instance, you might want to look up the difference between mutual funds and exchange-traded funds, because if you think 2017 will be a good year for the stock market, it may be the year for putting some ETFs in your portfolio.

Or, maybe it’s about time that you understood the relationship between bond prices and interest rates.

3. Know your tolerance for risky business

Say the market drops, and you look at your balance and it’s lower. “That’s going to happen,” says Will Branch, investment analyst for MillenniuM Investment & Retirement Advisors in Charlotte, North Carolina. If the mere thought makes you feel ill, imagine it really happening.

You might need to take some risk off the table. Branch recommends this rule of thumb to make your allocation more comfortable: Whatever your age is, take that number and use it as a percentage of your total holdings for safer, fixed-income investments like bonds.
– via

What are your plans for 2017?

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