Here are six good tips for investors
Many experienced investment professionals will tell you theres no quick way to achieve financial success. But there are certain rules that can help make you a better investor. Here are six to consider:Know your objective. You wouldnt go on a long trip without taking a map. So why would you embark on an investment program without knowing where you want to wind up?Establish a goal. Maybe its a comfortable retirement, or a college education for a child or grandchild. Whatever it is, make sure youre clear about what you want to accomplish. And know how much time you have to reach the goal. Only then can you truly take steps toward where you want to be.Set up a regular investment plan. Investing regularly toward your financial goal puts a flow of assets to work for you. The sooner you begin contributing money toward your goal, the longer your money has time to compound.For example, if you invested $200 monthly in an investment that earns a hypothetical 8 percent annually, youd have $36,025 in 10 years and $281,710 in 30 years. Typically, the more you invest, the greater the potential. For instance, if you added another $100 each month to the same investment, youd have $54,037 in 10 years and $422,565 in 30.Create a diversified portfolio. Diversification means putting your assets in a variety of investments.By diversifying, you may risk some money, because investments often do not rise and fall in price together at the same time, all the time. Those that rise in value could help offset the losses of those that decline.Rebalance periodically. Investing is not a one-time event. As your needs change, so should your investment strategy. Moving assets from one investment to another to meet changing conditions is called rebalancing. Its as essential to investment success as knowing your financial goal.For example, if youre interested in potentially securing a comfortable retirement, you would make investments designed to achieve that goal. But after retiring, if you need current cash flow, youll want to select investments that generate income.Think long-term. Dont let the markets daily ups and downs scare you into selling a fundamentally sound investment when youre investing for a long-term financial goal. Thats a mistake many individuals make. In fact, if youve got what you consider to be a good investment, think of market downturns as opportunities to perhaps purchase more shares at lower prices. When investing long-term, think long-term.Rely on a professional. In todays fast-paced financial world, its difficult for casual investors to monitor the markets and stay on top of emerging investment opportunities. Thats why its wise to establish a relationship with a financial professional who will take the time to understand your needs.Please be aware that a periodic investment plan such as dollar-cost averaging does not assure profit or protect against loss in declining markets. Since such a strategy involves continuous investments, an investor should consider his or her ability to continue purchases through periods of low price levels.The accuracy and completeness of this material are not guaranteed. The opinions expressed are those of Fraser M. Horn and Dudley M. Irwin and are not necessarily those of Berthel Fisher or its affiliates. This material is distributed solely for information purposes and is not a solicitation of an offer to buy any security or instrument or to participate in any trading strategy. Provided by courtesy of Fraser M. Horn and Dudley M. Irwin, investment adviser representatives with Berthel Fisher in Edwards. Registered Representatives of and securities offered through Berthel Fisher & Company Financial Services, Inc. (BFCFS). Member NASD/SIPC. 1st & Main Investment Advisors is independent of BFCFS.