posted by mark
on Fri, 01/25/2019 - 08:36
Some of the simple, but key ways to improve your returns on your investments are as follows:
- Train your mind to see drops in the market as buying opportunities. While I like when the market goes up, I never buy securities when prices move up, only when they move down. Just like a retail store, I like sales and when prices move up, I either stop buying or switch to alternatives. But, when I see an obvious sale, I am all over it.
- Understand the fees that you pay and the effect those fees have on your long term returns. With Google at most people's fingertips, there is no excuse for not doing a little research to better educate yourself. Mathematically, what are seen as small fees in most venues effect your returns significantly over the long haul in the investment world. A small 1/2 to 1 percent annual fee has far reaching effects upon YOUR returns.
- Invest for the long term. Who really cares if the market is down today, this week, this month or this year. These are buying opportunities, but you have to be patient. Nothing worthwhile in life happens in the short term unless you happen to be part of the miniscule group who have won the lottery. That is a nice day dream, but is highly unlikely to occur. Long term refers to 5 or 10 years, not 5 to 10 minutes.
- You must monitor your own investments. No one and I mean no one has your best interests in mind more than yourself. Setting investments on "auto-pilot" is a sure way to achieve less returns than you deserve. Time is something you can't get back. You don't want to wake up some day and find out that you didn't reach your goal because you failed to monitor your investments. Putting your head in the sand never is a smart way to invest.
- Read, read, read, read..... The more you know, the more you earn.
Get started today. Every long journey starts with one small step!
