Six Keys to Smart Investing

Key #1: Set goals
Determine how much money you will need and when you will need it. Monitor your financial plan frequently and adjust at least annually—more often if required.

Key #2: Start now
Take advantage of compounding. While you may always have excuses to put off investing, now is the best time to start, even if you can only afford $50 or $100 per month. It could mean the difference between a frugal retirement and the opportunity to have your money go as far as your plans do.

Key #3: Diversify
To help reduce risk, diversify your investments/assets across a spectrum of asset classes.

Key #4: Consider stocks for potential growth
Historically, stocks have outperformed more conservative investment classes and inflation. But past performance does not indicate future results, and stocks are potentially riskier than other investments—especially in the short run. A good rule of thumb is to fund stock investments with money that you won’t need for at least five years.

Key #5: Continue systematically—be disciplined and patient
Small, regular payments are a great way to help build your nest egg.

Key #6: Consult an investment professional
He or she can help you develop a plan to help you reach your goals.

Participation in a systematic investment plan does not assure a profit and does not protect against a loss in declining markets. Asset allocation/diversification cannot eliminate the risk of fluctuating prices and uncertain returns.

The accuracy and completeness of this article are not guaranteed. The opinions expressed are those of the author(s) and are not necessarily those of David A. Noyes & Company or its affiliates. The material is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Provided as a courtesy by the investment professionals at David A. Noyes & Company.

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