8 New Year’s Investing Resolutions to Finance Your Retirement

by KenFaulkenberry

in Investment Basics

New Year's Resolutions

New Year's Resolutions

These New Year’s Investing Resolutions will make you a more successful investor and help you finance your retirement. Most of us make New Year’s resolutions because they are hard. These investing resolutions aren’t hard; they just require some discipline, time and the desire to be successful.

New Year’s Investing Resolutions # 1 – Take Control of Your Future

Don’t allow others to control your wealth and your future retirement! With all the scams and institutions going bust it makes sense to self-direct your investments. You can do it yourself; it’s not that hard with the right resources ( see #8).

New Year’s Investing Resolution # 2 – Have an Investing Plan

Pay yourself first! Most people require an automatic investment plan to be faithful. Do whatever it takes to make yourself invest as much as you can, as early as possible. First priority is investing in a 401k plan matched by your company, or a Traditional or Roth IRA. These investment vehicles give you the advantage of growing your money tax deferred, or in the case of the Roth IRA, tax free.

New Year’s Investing Resolution # 3 – Make Asset Allocation your First Priority

How you divide your assets will determine 90% of your returns. Can you believe that? It’s true; studies have proven asset allocation is the most important concept of investing. Most investors spend too much time on what stock to buy and too little on how much to invest in each asset category. Spend time learning more about asset allocation.

New Year’s Investing Resolution # 4 – Have a Risk Management Plan

How much of your investment portfolio can you afford to lose? Make sure you understand the concept of maximum probable loss and how how to control investment portfolio losses. Make diversification an important element of your portfolio management.

New Year’s Investing Resolution # 5 – Choose an Investing Strategy

It’s important to have an  investing strategy; an understanding of how you choose to invest. Are you a value, contrarian, growth at a reasonable price, growth, or momentum investor? An investor does not have to pick one strategy, but should maintain a consistent methodology and comprehend how and why they are picking an individual investment.

New Year’s Investing Resolution # 6 – Follow the Rules

It doesn’t do any good to know the right concepts and deviate from your plan. Follow the rules and parameters you set for yourself. I have established 32 investment rules and strategies for myself. Feel free to explore mine and/or establish your own; but follow the rules and parameters you set for yourself.

New Year’s Investing Resolution # 7 – Keep Expenses Low

You only get to keep what you make. Don’t allow excessive trading or high fund costs to eat up your returns. If you own a mutual fund with a high mutual fund expense ratio it can cost you more than your original investment over a 30 year period!

New Year’s Investing Resolution # 8 – Get Help!

You don’t have to tackle investing by yourself. There are plenty of good services that provide sound guidance to help keep you from making the big mistakes that destroy wealth.

There are many benefits to using an investing guide. Find someone you agree with, someone that has the same philosophy and temperament you do. Then learn and grow your investment knowledge and skills with which to finance your retirement and control your own destiny!

Related Reading: 10 Investing Principles Fundamental to Successful Outcomes

Investment Analysis: High Probability Strategies

Written by KenFaulkenberry


AAAMP Blog by Ken Faulkenberry
Ken Faulkenberry earned an MBA from the University of Southern California (USC) Marshall School of Business with an emphasis in investments. Ken has 25 years of investment experience and is dedicated to helping people with self-directed investment management through the Arbor Investment Planner. His asset allocation strategies have an outstanding performance record.
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