5. Listen to your voice, not everyone else’s
Develop your own voice and listen to it.
People trying to steer you in one direction or the other probably don’t know you as well as they think they do. They may also have personal agendas that don’t align with yours.
6. Consider the risk of not taking risk
Over the 35-plus years that I’ve been investing in stocks, I often stood on the sidelines — too afraid to invest — when market crashes and recessions hit.
By the time the Great Recession hit, I had learned from my mistakes. I invested a chunk of my savings in quality stocks, and also bought a rental house.
Those two decisions increased my net worth by about $200,000.
While there’s always a risk of losing money by investing in stocks, real estate or anything else that changes in value, there’s a greater risk in not doing so. You’re unlikely to retire rich, or even adequately funded, if you earn an average income and are willing to invest only in guaranteed rates of return.
In short, you won’t get a hit from the dugout.
7. Think long term
If you’re trying to invest short-term, you might as well head to Vegas, where you can at least drink free.
When I bought General Electric for less than $10 a share in 2009, I didn’t expect it to go up right away. But because it’s one of the biggest companies on the planet, I knew it wouldn’t go bankrupt, and I assumed that sometime before I died it would come back. In fact, had the market continued to tank and GE continued to fall with it, I was prepared to buy more.
Live like you’re going to die tomorrow, but invest like you’re going to live forever.
I founded Money Talks News in 1991. I’m a CPA and have also earned licenses in stocks, commodities, options principal, mutual funds, life insurance, securities supervisor and real estate. Got some time to kill? You can learn more about me here. And if you’re not subscribed to our free daily emails, you must be crazy! Subscribe here.
Are you worried about the Brexit? How will the historic vote impact the way you invest? Sound off below or over on our Facebook page.