Friday, June 12, 2009
Invest it!
Investing is primarily a passive process.
*It simply involves the buying and selling of passive financial instruments such as stocks,bonds,options,certificates of deposit,and so forth.
*Althought investing can be done a minutes a day,the results are accumulated and compounded over long periods of time.
3 steps of investing
1) Filtering
2) Timing in
3)Timing out
The road to winning!
Lesson 1: The longer you invest, the lower your risk.
25 year holding period has shown to give you a zero risk situation.
Lesson 2: If You Can't Beat'Em,Join'Em.
Index fund VS Professionally Managed Mutual Fund.
Lower costs,0.2% Higher costs,2% or more
Lower portfolio turnover Higher portfolio turnover
Low transaction fees Higher transaction fees
Low tax consequences Higher tax consequence
Lesson 3:The sooner you buy, the richer you can become.
Take 50% of your monthly, savings and sock it away into yor chosen index fund
1)Dollar cost averaging
Works only if you continue buying.
*You don't have to be smart.You can be a total idiot and still win.
*It simply involves the buying and selling of passive financial instruments such as stocks,bonds,options,certificates of deposit,and so forth.
*Althought investing can be done a minutes a day,the results are accumulated and compounded over long periods of time.
3 steps of investing
1) Filtering
2) Timing in
3)Timing out
The road to winning!
Lesson 1: The longer you invest, the lower your risk.
25 year holding period has shown to give you a zero risk situation.
Lesson 2: If You Can't Beat'Em,Join'Em.
Index fund VS Professionally Managed Mutual Fund.
Lower costs,0.2% Higher costs,2% or more
Lower portfolio turnover Higher portfolio turnover
Low transaction fees Higher transaction fees
Low tax consequences Higher tax consequence
Lesson 3:The sooner you buy, the richer you can become.
Take 50% of your monthly, savings and sock it away into yor chosen index fund
1)Dollar cost averaging
Works only if you continue buying.
*You don't have to be smart.You can be a total idiot and still win.
Subscribe to Comments [Atom]

Post a Comment